NESDB: Thai economy will grow 4.5-5.5% in 2012

BANGKOK, November 21 (TNA) - The National Economic and Social Development Board (NESDB) projected on Monday that the Thai economy should grow 4.5-5.5 per cent on average in 2012, although the country's flooding crisis over the past couple of months would likely pull down the national economic growth by 2.3 per cent this year. NESDB Secretary General Akom Termpittayapaisit said that a rebound in Thailand's property and construction sectors early next year, in the wake of vast inundations in several provinces, including some parts of Bangkok, in the second half of this year, as well as new public investment projects on long-term flood prevention, irrigation and water management systems and related activities would spur the country's gross domestic product (GDP) growth next year to meet the forecast figure. Akom acknowledged that the Thai government's rehabilitation plans for the country's agricultural, industrial and service sectors in flood-hit areas would also cushion the country's GDP growth in 2012, through more job creations and cash circulations. According to the NESDB chief, Thailand's inflation is likely to, therefore, stand around 3.5-4 per cent next year, boosted by expanding household consumption by some 4.4 per cent and investment projects by some 10.3 per cent. The NESDB chief conceded, however, that the flooding crisis, the worst in Thailand's half a century, would pull down the country's GDP growth by about 2.3 per cent, as a total flood-borne loss to the national economy estimated to reach 200-300 billion baht, causing the Thai GDP to be likely to grow only by 1.5 per cent on average this year, from 3.5-4 per cent earlier forecast, as the country's GDP should contract by 3.7 per cent although the GDP grew by 3.1 per cent year-on-year in the first nine months of this year. (TNA)