Stable growth still an elusive dream for struggling Thailand

Escalating export headwinds are a key threat.

Thailand's economic growth will be derailed not only by domestic turmoil but also by escalating global headwinds.

According to BMI Research, the potential for renewed political turmoil over coming quarters will act as a major drag on the Thai economy.

This will be exacerbated by growing export challenges in light of sluggish global growth.

"While Thailand's military government has sought to engineer an economic recovery, growing external challenges and the potential for renewed political turmoil will keep GDP growth grounded. As such, we have downgraded our 2015 real GDP growth forecast to 3.2% from 3.5% previously. The slow economic recovery has also led us to revise our forecast for the Thai baht to end 2015 at THB36.50/USD and average THB34.50/USD in 2015,” said the report.

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