The Asian Development Bank slashed its economic growth forecast in Thailand this year to 2.9% despite generally positive developments, according to a report published on Thursday. The revision was prompted by rising energy and commodity prices, and the global economic slowdown.
The growth forecasts are revised down slightly from 3.0% to 2.9% for 2022 and from 4.5% to 4.2% for 2023.
According to the Bank, rising prices of commodities and energy, as well as the slowing economy across the globe are likely to limit export demand, increase production costs, and lower household purchasing power.
Meanwhile, Thailand’s inflation projection has been raised from 3.3% to 6.3% for 2022 and from 2.2% to 2.7% for 2023, driven by the rising energy prices and higher cost pass-throughs, which are expected to affect prices for a wider range of products.
The Bank also lowered its projection for emerging Asia GDP growth this year as China’s Covid Zero policy has repercussions on regional supply chains and economic development.
This year, the Bank anticipates the region’s growth to be 4.6%, down from an earlier estimate of 5.2%.
