BoT: Growth up to 4% in second half

The Bank of Thailand has forecast economic growth in a range of 3-4% for the second half of this year.

Governor Prasarn Trairatvorakul said the positive factors were fast domestic consumption recovery, the tourism high reason and steady fiscal budget disbursements.

But whether the economy will expand by 2.5% for all of 2014 as targeted by the junta will hinge on what measures are in store, preferably infrastructure investments.

For 2015, the central bank projected 5.5% provided the resilient private sector continues to rebound and the government's fiscal position improves.

The major downside risk is high household debt which needs to be monitored closely despite signs of easing, Mr Prasarn said.

The high debt concentrated in the lower-income group, which in turn curbs their purchasing power.

By contrast, the private and public sectors are doing fine, he said.

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