ID :
138941
Tue, 08/24/2010 - 08:25
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http://m.oananews.org//node/138941
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Impressive growth reflects government’s ability to address economic woes
BANGKOK, Aug 24 – Finance Minister Korn Chatikavanij on Monday said the National Economic and Social Development Board (NESDB) report that Thailand had achieved economic growth of 9.1 per cent in the second quarter of this year mirrored the government’s successful attempt to cope with the economic challenges and the private sector’s ability to adjust to the situation.
However, what the government needs to do in the next step is to ensure the public benefits equally from the economic growth because it could lead to sustainable expansion.
Regarding the NESDB projection that the economy would grow at a slower pace in the second half of this year in tandem with the export decline due to the stronger baht, he said, efforts to drive economic growth in the second half would be more challenging than in the first half.
However, it remains the ministry’s assumption that the economy will grow around 5.5-6 per cent for the whole of this year.
“The economy grew 10 per cent in the 1st half of this year, so it is not unusual to see the economy grow at a slower pace in the 2nd half of the year,” he said.
Regarding the baht appreciation, Mr Korn said, the Thai currency had not strengthened most sharply in the region as the Malaysian ringgit is stronger than the baht.
He noted what would affect Thailand’s exports adversely is the purchasing power of trading partners rather than the currency exchange rate.
The Thai baht had strengthened alongside other currencies in the region because the US dollar had weakened.
“The baht has strengthened for a year and is likely to continue appreciating. Still, it has not adversely affected exporters’ competitive edge because other currencies in the region have appreciated too.
“What should be monitored now is the buying power of trading partners. Should their economies slow down, it will affect our exports,” said Mr Korn. (MCOT online news)
However, what the government needs to do in the next step is to ensure the public benefits equally from the economic growth because it could lead to sustainable expansion.
Regarding the NESDB projection that the economy would grow at a slower pace in the second half of this year in tandem with the export decline due to the stronger baht, he said, efforts to drive economic growth in the second half would be more challenging than in the first half.
However, it remains the ministry’s assumption that the economy will grow around 5.5-6 per cent for the whole of this year.
“The economy grew 10 per cent in the 1st half of this year, so it is not unusual to see the economy grow at a slower pace in the 2nd half of the year,” he said.
Regarding the baht appreciation, Mr Korn said, the Thai currency had not strengthened most sharply in the region as the Malaysian ringgit is stronger than the baht.
He noted what would affect Thailand’s exports adversely is the purchasing power of trading partners rather than the currency exchange rate.
The Thai baht had strengthened alongside other currencies in the region because the US dollar had weakened.
“The baht has strengthened for a year and is likely to continue appreciating. Still, it has not adversely affected exporters’ competitive edge because other currencies in the region have appreciated too.
“What should be monitored now is the buying power of trading partners. Should their economies slow down, it will affect our exports,” said Mr Korn. (MCOT online news)
