ID :
108531
Thu, 02/25/2010 - 09:48
Auther :
Shortlink :
http://m.oananews.org//node/108531
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Thai economy likely to grow 2.5-3.5% this year: leading academic
BANGKOK, Feb 25 (TNA) – The Thai economy is projected to grow 2.5-3.5 per cent this year, boosted by an increase in tourism activities, exports and investment, according to a leading academic economist.
Anusorn Tamajai, dean of Rangsit University's Faculty of Economics, forecast the economy will continue to enjoy impressive growth of 6 per cent in the first quarter of this year from 5.8 per cent in the fourth quarter last year.
But after that, he said, the economy is likely to grow at a slower pace due to higher inflation rates, rising interest rates, fiscal measure constraints, and global economic uncertainties.
Overall, tourism, exports, and investment would benefit from the quick recovery of both Asian and US economies. Still, some regions, particularly Europe, might have difficulties with economic recovery.
Dean Anusorn suggested the Thai government not lift economic stimulus measures for this moment. Instead, it should prepare and opt to count on them in a proper time because the Thai economy remains vulnerable to political instability.
However, should the government want to withdraw the economic stimulus package, he said, it should remove the fiscal measures and provide an efficient welfare system.
Unless the fiscal measures are removed, Dr Anusorn said, Thailand's fiscal position will be affected in the next 4-5 years like that of Greece and Spain.
He suggested monetary measures not be withdrawn too quickly because it could negatively impact both exports and tourism. Any interest rate adjustment depends on the trend of inflation. (TNA)
Anusorn Tamajai, dean of Rangsit University's Faculty of Economics, forecast the economy will continue to enjoy impressive growth of 6 per cent in the first quarter of this year from 5.8 per cent in the fourth quarter last year.
But after that, he said, the economy is likely to grow at a slower pace due to higher inflation rates, rising interest rates, fiscal measure constraints, and global economic uncertainties.
Overall, tourism, exports, and investment would benefit from the quick recovery of both Asian and US economies. Still, some regions, particularly Europe, might have difficulties with economic recovery.
Dean Anusorn suggested the Thai government not lift economic stimulus measures for this moment. Instead, it should prepare and opt to count on them in a proper time because the Thai economy remains vulnerable to political instability.
However, should the government want to withdraw the economic stimulus package, he said, it should remove the fiscal measures and provide an efficient welfare system.
Unless the fiscal measures are removed, Dr Anusorn said, Thailand's fiscal position will be affected in the next 4-5 years like that of Greece and Spain.
He suggested monetary measures not be withdrawn too quickly because it could negatively impact both exports and tourism. Any interest rate adjustment depends on the trend of inflation. (TNA)
