BANGKOK, Oct. 10 (Xinhua) -- The World Bank released on Thursday its latest report, slashing Thailand's economic projection this year from 3.5 percent to 2.7 percent, saying the drop resulted from export contraction.
The bank also slashed Thailand's GDP growth projection for 2020 to 2.9 percent from 3.6 percent in its East Asia and Pacific Economic Update.
Export slump in the first half of the year, global economic slowdown and impacts from the trade friction between major economies contributed to lowering of the GDP growth outlook, said the report.
The report also attributed Thailand's economic slowdown to the recent drought, which had been the worst in 10 years and affecting farmers' income, as well as weakening domestic consumption.
Kiatipong Ariyapruchya, senior country economist of the World Bank said at the press conference that Thailand's economic stimulus measures were rolled out just in time when the domestic economy has weakened and exports contracted 5.3 percent.
The Thai government can issue more stimulus measures, focusing on low income earners because Thailand's public debt still remains low, said Kiatipong.
"In the medium and long term range, the Thai government's mega projects in Eastern Economic Corridor (EEC) should help increase private investment, especially those involving construction of infrastructure and transportation routes," said Kiatipong, adding that building on infrastructure and transportation projects will promote cross-border investment with Cambodia, Laos, Myanmar and Vietnam.
