Bank forecasts 3.4% growth but warns of impact from exodus of migrant workers

Kasikorn Research Center Thursday (July 6) forecast continual growth of the economy as export prospective remains bright.

But the center also warned that the new foreign labour law could affect this year’s growth.

The center raised its forecast for 2017 GDP growth to 3.4% from 3.3%, citing an export recovery.

It said the country’s exports were expected to grow 3.8% this year, up from the previous projection of 2%.

However, it was worried that the new foreign labor laws could have significant impact on some industries, particularly the agricultural sector as it caused thousands of migrant workers to leave.

The center said the absence of migrant workers could cause 12.4 billion baht of damages to the economy, accounting for 0.03% of country’s GDP.

Earlier this week, the Bank of Thailand also adjusted up its projection of economic growth rate for this year by 0.01 to  3.5 % from 3.4%.