Exports,
equal to more than 60 percent of GDP, fell 4.3 percent on the year in
the first quarter and are likely to contract for the third straight year
in 2015.
Bank of Thailand
Governor Prasarn Trairatvorakul told Reuters on Friday a "perfect storm"
hit exports in the first quarter. He said having 3 percent growth this
year was "going to be a challenge".
The planning agency on Monday reduced its 2015 forecast to 3.0-4.0 percent, from the 3.5-4.5 percent it saw in February.
Thailand's monetary policy committee has cut the benchmark interest rates THCBIR=ECI at its last two meetings. But economists say what's needed is much faster spending by the government.
"Monetary easing can only mitigate the delay in fiscal stimulus, but is no panacea," ANZ said after Monday's GDP release. "Fiscal policy clearly needs to lead to jumpstart the economy, given that the marginal boost from trimming the interest rate from already low levels is minimal."
The planning agency on Monday reduced its 2015 forecast to 3.0-4.0 percent, from the 3.5-4.5 percent it saw in February.
Thailand's monetary policy committee has cut the benchmark interest rates THCBIR=ECI at its last two meetings. But economists say what's needed is much faster spending by the government.
"Monetary easing can only mitigate the delay in fiscal stimulus, but is no panacea," ANZ said after Monday's GDP release. "Fiscal policy clearly needs to lead to jumpstart the economy, given that the marginal boost from trimming the interest rate from already low levels is minimal."
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