FTI believes Thai economy could grow 5% in 2012

BANGKOK, January 5 (TNA) - The Federation of Thai Industries (FTI) is optimistic that Thailand’s economy could grow 5 per cent in 2012 on a large amount of insured money to be paid by insurance firms to industrial plants damaged by severe flood during the last quarter of 2011, said FTI chairman Payungsak Chartsuthipol. Payungsak said the economy could sustain growth if the government has a transparent policy to drive the country’s economy forward and with efficiency, adding that growth of 5 per cent or may be over could be achieved as owners of damaged industrial plants need to spend money on repairs. However, risk factors including unclear situation of global economy and oil prices along with Thailand’s political problem and the directions of interest rate could affect economic growth in this country, he said. Although there are signs of declining in local interest rates with an aim of stimulating local economy, labour wage and shortage of labour skills in several industrial sectors still persist, Payungsak said. He said he believed 80 per cent of production sector could recover well during the first quarter of 2012 due to continued purchasing orders from oversea. For example, production of vehicles could be increased to between 2 to 2.3 million units this year, he added. (TNA)