2014 forecast slashed
The Fiscal Policy Office Thursday cut the 2014 GDP forecast from 5.1 per cent to 4 per cent.
Somchai Sajjapongse, director-general of the office, said that the 2014 forecast is based on the assumption that Thailand would host the national election on February 2.
If there is no election and political conflicts deteriorate, it is possible that the GDP next year would expand by only 3 per cent.
The forecast is higher than the 2013 level, as the office anticipates recovery in export growth as well as domestic demand.
On Thursday, the office announced the new 2013 growth forecast, which was cut from 3 per cent to 2.8 per cent, on lower-than-expected domestic demand and demand for Thai exports.
Somchai said that while demand weakens, confidence among consumer and business operators also declines.