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114086
Tue, 03/30/2010 - 09:20
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http://m.oananews.org//node/114086
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FPO boosts 2010 economic growth projection
BANGKOK, March 29 (TNA) -- The Thai economy is projected to grow 4.5 per cent this year, higher than the 3.5 per cent figure estimated in December last year, boosted by the strong economic recovery of the country's trading partners particularly in Asia, according to the Fiscal Policy Office (FPO) Director-General Satit Rungkasiri.
He said economies of Asian countries are very likely to recover stronger than other regions in the world. So, it will result in Thailand's exports to trading partners in Asia increasing significantly and lead to the export growth of 9.7 per cent for 2010.
Simultaneously, local spending, particularly the private consumption, is forecast to grow 4.3 per cent, driven by higher incomes earned by farmers due to increasing farm product prices, rising household incomes thanks to the economic recovery, and the lower unemployment rate.
He said that private investment is expected to accelerate this year, bolstered by higher local production capacities upon an increase in purchase orders overseas and domestically and the low interest rate. It is projected the private investment will expand 8.2 per cent.
In addition, public spending will continue playing a pivotal role in boosting the Thai economic growth.
In particular, the state spending on investment projects under the Thai Khem Kang (Strong Thailand) scheme would help make the public investment grow 6.8 per cent while the public consumption is forecast to expand 4.2 per cent.
Mr Satit said the economic projection was made by taking into consideration impacts from the ongoing political standoff and the investment suspension in
the Map Ta Phut Industrial Estate.
Should the government address both problems quickly and disburse at least 80 per cent of the Bt350 billion investment budget earmarked for the Thai Khem Kang project support, he said, the Thai economy is likely to grow 5 per cent this year.
The political rallies, if persisting for three months or until the second quarter of this year, would make the gross domestic product (GDP) growth reduce from 4.5 per cent to 4.5-4.3 per cent.
If they dragged on until the third quarter, it would affect investment and people spending and make the projected GDP growth drop to 4 per cent.
In the worst-case scenario, the GDP might drop to 2.7 per cent if the rallies turned violent and dragged on, he said. (TNA)
He said economies of Asian countries are very likely to recover stronger than other regions in the world. So, it will result in Thailand's exports to trading partners in Asia increasing significantly and lead to the export growth of 9.7 per cent for 2010.
Simultaneously, local spending, particularly the private consumption, is forecast to grow 4.3 per cent, driven by higher incomes earned by farmers due to increasing farm product prices, rising household incomes thanks to the economic recovery, and the lower unemployment rate.
He said that private investment is expected to accelerate this year, bolstered by higher local production capacities upon an increase in purchase orders overseas and domestically and the low interest rate. It is projected the private investment will expand 8.2 per cent.
In addition, public spending will continue playing a pivotal role in boosting the Thai economic growth.
In particular, the state spending on investment projects under the Thai Khem Kang (Strong Thailand) scheme would help make the public investment grow 6.8 per cent while the public consumption is forecast to expand 4.2 per cent.
Mr Satit said the economic projection was made by taking into consideration impacts from the ongoing political standoff and the investment suspension in
the Map Ta Phut Industrial Estate.
Should the government address both problems quickly and disburse at least 80 per cent of the Bt350 billion investment budget earmarked for the Thai Khem Kang project support, he said, the Thai economy is likely to grow 5 per cent this year.
The political rallies, if persisting for three months or until the second quarter of this year, would make the gross domestic product (GDP) growth reduce from 4.5 per cent to 4.5-4.3 per cent.
If they dragged on until the third quarter, it would affect investment and people spending and make the projected GDP growth drop to 4 per cent.
In the worst-case scenario, the GDP might drop to 2.7 per cent if the rallies turned violent and dragged on, he said. (TNA)
