Thai economic growth slows

BANGKOK: Thailand´s economy slowed in the second quarter hit by weak domestic demand and exports, official data showed Monday, with growth expected to be hampered by China´s devaluation of the yuan.
Gross domestic product grew 2.8 percent compared to a year earlier between April and June, in-line with a forecast from analysts polled by Bloomberg News but down from three percent in the previous quarter.
Growth also faces "major constraints" for the rest of 2015 after China´s devaluation of its currency will likely increase competition for Thai exports, the National Economic and Social Development Board said.
China´s central bank shocked world financial markets last week when it devalued the yuan, sparking fears of a currency war in Asia in which countries vie to keep their exports competitive.
In response, Thailand´s planning agency trimmed its growth forecast to 2.7-3.2 percent for the year, down from 3.0-4.0 percent. Prime Minister Prayut Chan-O-Cha, the former army chief who led last year´s coup, has staked the junta´s legitimacy on pepping up Thailand´s once dynamic economy.