Thailand GDP to come in below 1% this year

It was not what everyone expected.

It has become an increasingly common notion in recent weeks that GDP growth is likely to come in below 1% this year, and even the government is now suggesting the same.

According to DBS, a softer CPI inflation outlook amid lower crude oil prices is pressuring the Bank of Thailand to lower its interest rates further, but the BOT thinks that any further rate cut is unlikely to provide a boost to underlying demand.

DBS adds that high household debt may continue to limit the pace of recovery in private consumption, as household deleveraging is likely to remain prevalent in 2015.

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