The economic agency of the government of Thailand said on Monday that it had slashed the growth projection of its economy down to 3%-4% for 2014, as compared to the forecasted figure of 4%-5%. The economic agency was forced to correct the growth projection following anemic growth in the final quarter of 2013, even as the turmoil faced by the economy continues without a definite end in sight.
According to a statement by the Office of the National Economic and Social Development Board, the economy of Thailand grew by a mere 0.6% in the quarter between October and December 2013. As compared to the previous quarter, this was a 2.7% dip in growth rates.
Ever since a protests against Prime Minister Yingluck Shinawatra’s government erupted in November 2013, Thailand has been gripped with political tension and several incidents of clashes between members of the public and government.
According to the national economic board, consumers have borne in mind the potential problems associated with the political turmoil in Thailand, and have thus desisted from big-ticket spends. The impacts of this are now being seen on the Thai economy.
Another reason that could be the reason behind these poor growth figures is the weak government spending. This aspect has weighed down the Thai economy—w problem that is compounded by a dwindling number of foreign tourists to Thailand.
According to figures provided by the board, the Thai economy saw a growth of 2.9% in 2013, as compared to its 6.5% growth recorded in 2012.