Thailand's National Economic and Social Development Board (NESDB) reported Monday that the country' s economy had been expected to expand by 3.5-4 percent in 2011, lower than the 3.5-4.5 percent projected earlier in May.
According to NESDB Secretary General Arkhom Termpittayapaisith, Thailand's economy in the second quarter grew by only 2.6 percent, decreasing from 3.2 percent in the first quarter.
Contractions in the manufacturing sector affected by Japan's devastating earthquake and tsunami, and the subsequent contraction of the Japanese economy as well as reduction in total investment are among the leading causes.
Thai economy grew by 2.9 percent in the first half of 2011, NESDB reported.
After seasonal adjustment, the gross domestic product (GDP) is projected to grow in the range of 3.5-4.0 percent while headline inflation is forecasted to be in the range of 3.6-4.0 percent.
The adjustment was owing to the fluctuation of oil prices, the delay of government budget disbursements in 2012, risks on global economic recovery, particularly the higher risk of economic recession in the US and the continuing European public debt issues, and the risk of volatility related to the money market, the capital market and the foreign exchange rate.
In addition, the Thai baht tended to appreciate in the latter half due to depreciation of U.S. dollar, the NESDB secretary general said.