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Malaysian Visits To Thailand Down - Opportunity for Langkawi?
Thailand's government cut its economic growth forecast to 6.5 percent this year after second- quarter expansion was less than expected because of record oil prices and an outbreak of bird flu.
Thailand's lower estimate compares with increased growth predictions in Southeast Asian neighbors Singapore and Malaysia, where rising domestic spending is supplementing export gains. The Thai stock exchange is the world's worst performer this year. ``The reduction in the growth forecast reflects the impact of oil prices on domestic consumption,'' said Usara Wilaipich, an economist at Standard Chartered Bank in Bangkok. ``We are fortunate that exports are still helping growth this year.''
Thailand's SET Index has lost 22 percent in U.S. dollar terms this year. The Thai baht fell 0.16 percent against the dollar to 41.59.
Singapore's government last month raised its 2004 growth forecast to as high as 9 percent from 7.5 percent.
Malaysia's economy will probably expand 6 percent to 6.5 percent, according to a March forecast by the country's central bank. The U.S. economy will probably grow an annualized 3.4 percent in the third quarter, according to a median survey of 54 economists.
The Thai government has raised gasoline prices by as much as 9.4 percent in the past month to cut subsidies after it spent 29.7 billion baht ($714 million) to limit retail gasoline prices since January.
VIOLENCE IN SOUTH
Violence in the south has hurt tourism. Bombings, shootings and other violence have claimed more than 250 lives in three southern Muslim-majority provinces since January.
Tourist arrivals in the second quarter fell 13 percent from the previous quarter to 2.58 million after the unrest deterred overseas travelers, especially from southern neighbor Malaysia, the country's biggest source of visitors.
Bangkok 6/9/2004
