The Bank of Thailand said Friday it expects the Thai economy to expand by only 3.7 percent this year.
In July, it forecast a 4.2 percent growth rate. Earlier in the year, it projected a 5.1 percent growth rate.
In the minute of the Monetary Policy Committee (MPC)'s latest meeting, the 2014 forecast was also revised downward from 5 percent to 4.8 percent.
"Fragile global recovery and the possibility of further delay in public infrastructure spending caused the GDP (gross domestic product) growth fan chart to be tilted toward the downside over the forecast period and by slightly more than in the previous projection," the MPC said.
Inflation forecasts were also revised down for both 2013 and 2014. With a possibility of lower demand pressure than assessed in the baseline case, inflation fan charts were slightly further downward-skewed compared to those previously assessed.
Headline inflation forecast for 2013 and 2014 is chopped from 2. 3 percent to 2.2 percent, and from 2.6 percent to 2.4 percent, respectively.