After the exports alert for july (read here ), and despite the first denial of the Commerce ministry… thai authorities have changed the growth target for the year to 6.5 % from 8,1 % (read here).
However, the Fiscal Policy Office maintains “the forecast GDP growth of 4 per cent this year, given that the affect of the July export’s smaller growth on the economy would be offset by the state spending and domestic consumption and private sector investment“.
Offset by domestic consumption and private sector ? Pure wishfull thinking in my opinion (all the lastest news show a slowdown). As for the state pending, this is not serious. Impossible in 4 month to inject the money (all “mega projects” are very slow to be implemented).
And if the strong THB have affected exports performances in july… well it’s likely that the trend will continue the following month… Therefore, the problem would worsen.
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