Thailand’s National Economic and Social Development Board (NESDB) has lowered the country’s predicted economic growth rate for this year to 2.7-3.2 percent from the previous 3-4 percent.

Workers at Toyota factory in Thailand (Source: AFP)

The board attributed the adjustment to weak domestic demand and exports and increased product competitiveness caused by China’s yuan devaluation.

London-based macro-economic research company Capital Economics also predicted that Thailand’s economy would face a gloomy outlook this year with government spending and tourism the only two engines driving growth.

Statistics released on August 17^th showed that the gross domestic product increased by 2.8 percent year-on-year in the second quarter, lower than the 3 percent growth rate in the first quarter./.

VNF/VNA