Thailand's economic growth is expected to decline moderately this year due to high household debt and restrained exports, says the World Bank.
"Growth in Thailand is expected to slow to 2% in 2016 from 2.5% in 2015 as high household debt holds back consumption and export growth is subdued," the global development lender said in a statement.
"Policy uncertainty is likely to weigh on private investment."
It is estimated that Thailand's average GDP growth until 2018 will come in at 2.4%, according to the bank's "Global Economic Prospects" report.
The Bank of Thailand recently cut its economic growth estimate for 2016 to 3.5% from 3.7%, citing heightened downside risks such as drought, China's economic transition and the wider divergence of monetary policy among major economies.
But the central bank raised its growth forecast for 2015 to 2.8% from 2.7% on the back of increased public expenditure and private consumption.
A faster-than-expected slowdown in China is deemed as a risk to Thailand's economic growth, while the possibilities of greater financial market volatility and restricted credit are also concerns, the World Bank said.
A steep appreciation in the value of the US dollar and a slower-than-expected acceleration of high-income economies will also dent growth in the region, it said.
"State-owned enterprise reforms including measures to strengthen transparency and governance would reduce contingent fiscal risks in China, Thailand and Vietnam," the World Bank said.
Full Story: Bangkok Post
World Bank keeps gloomy Thai outlook
World Bank keeps gloomy Thai outlook
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