ID :
136242
Thu, 08/05/2010 - 08:54
Auther :
Shortlink :
http://m.oananews.org//node/136242
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BoT chief upbeat about further economic growth in H2
BANGKOK, Aug 5 – The Thai economy is expected to continue growing in the second half of this year with exports remaining a key driving force for the expansion, according to Bank of Thailand (BoT) Governor Tarisa Watanagase.
Delivering a keynote speech on “How Should the Thai Economy Adjust Itself to the Current Situation,” she said the economy in the second quarter of 2010 appeared to grow at a slower pace.
However, it is likely the economy would grow without interruption in the rest of the year since many economic indicators, particularly exports, had picked up markedly.
She said the exports surged 35 per cent in May and further increased to a record high of 46 per cent in June although overseas markets, particularly the Group 3 countries including the United States, Europe, and Japan, experienced an economic slowdown.
It showed Thai exporters managed to distribute products into other countries than the G3 countries and turn to trade more with the countries in the same region, particularly China.
Mrs Tarisa said the strengthening of the baht had not adversely affected exports. This could be witnessed by the export surge by 30-40 per cent in the past few months despite the stronger baht.
She conceded the exports would be definitely affected if the local currency appreciated by 40-50 per cent. But since early this year, the baht had strengthened against the US dollar by only 3.5 per cent.
The BoT chief said the current inflation rate is still in an expected range and will not undermine the economic growth this year.
However, the inflation rate is likely to rise to the maximum range of 3 per cent. So, it is necessary for the central bank to contain the inflation hike by gradually raising the policy interest rate.
“The interest rate remains in the upward trend in the 2nd half of this year. But how much it will increase depends on economic conditions,” she said. (MCOT online news)
Delivering a keynote speech on “How Should the Thai Economy Adjust Itself to the Current Situation,” she said the economy in the second quarter of 2010 appeared to grow at a slower pace.
However, it is likely the economy would grow without interruption in the rest of the year since many economic indicators, particularly exports, had picked up markedly.
She said the exports surged 35 per cent in May and further increased to a record high of 46 per cent in June although overseas markets, particularly the Group 3 countries including the United States, Europe, and Japan, experienced an economic slowdown.
It showed Thai exporters managed to distribute products into other countries than the G3 countries and turn to trade more with the countries in the same region, particularly China.
Mrs Tarisa said the strengthening of the baht had not adversely affected exports. This could be witnessed by the export surge by 30-40 per cent in the past few months despite the stronger baht.
She conceded the exports would be definitely affected if the local currency appreciated by 40-50 per cent. But since early this year, the baht had strengthened against the US dollar by only 3.5 per cent.
The BoT chief said the current inflation rate is still in an expected range and will not undermine the economic growth this year.
However, the inflation rate is likely to rise to the maximum range of 3 per cent. So, it is necessary for the central bank to contain the inflation hike by gradually raising the policy interest rate.
“The interest rate remains in the upward trend in the 2nd half of this year. But how much it will increase depends on economic conditions,” she said. (MCOT online news)
