|Thais cut growth forecast again, economy and exports weaken further
Thailand's economy shrank 0.3 percent in the three months to June, the second quarterly contraction this year, as lackluster demand hit manufacturing and exports, data showed.
However, the slide from the previous quarter was better than the revised 1.7 percent contraction in the three months to March.
On a year-on-year basis, gross domestic product expanded 2.8 percent in the second quarter of 2013, weaker than 5.4 percent in January-March, the National Economic and Social Development Board said today.
Manufacturing output eased 1 percent, the NESDB said in a statement.
Exports shrank 1.5 percent in the quarter from a year earlier.
In light of the latest figures that NESDB cuts its forecasts for 2013 GDP growth to 3.8-4.3 percent, from 4.2-5.2 percent projected in May, which was itself a downgrade from 4.5-5.5 percent previously estimated.
Analysts at Capital Economics warned the weak growth in the second quarter was likely to continue, adding: “We think a strong rebound in growth is unlikely. For a start, falling consumer confidence suggests the household sector is struggling.''—AFP