ID :
140684
Sat, 09/04/2010 - 14:10
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Shortlink :
http://m.oananews.org//node/140684
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Stronger baht won’t affect competitiveness, says FPO
BANGKOK, Sept 4 – The continued strengthening of the baht currency will not impact Thailand’s competitiveness internationally because the local currency moves in tandem with other currencies in the region, according to the Fiscal Policy Office (FPO).
FPO Director-General Satit Rungkasiri said the economies of most Asian countries enjoyed a growth of 7-10 per cent annually while those of Europe and the United States grew only 3 and 2.5 per cent in the first half of this year.
Because of this, foreign capital continued flowing into countries in the region including Thailand, leading to a strengthening of the regional currencies.
Given these factors, he believed Thailand’s competitiveness would not be affected as the baht and other currencies in the region had moved in the same direction.
Simultaneously, he said local entrepreneurs with foreign debts would benefit from the stronger baht since the debt amount they are obliged to repay would drop in value.
Also, entrepreneurs would enjoy a lower cost of purchasing machinery and raw materials for production.
Mr Satit projected the country’s exports would increase at a slower pace in the second half of this year after a strong growth of more than 40 per cent in the first and second quarters, so it is expected that exports will expand 20 per cent over the entire year.
Although exports will decline, higher consumption and investment can help drive the economy.
Regarding the Central Administrative Court’s decision to allow 74 investment projects in the Map Ta Phut Industrial Estate suspended last year to resume operation, he said the move could help restore foreign investor confidence in Thailand.
Therefore, he believed more foreign capital would flow into Thailand in the second half of the year. (MCOT online news)
FPO Director-General Satit Rungkasiri said the economies of most Asian countries enjoyed a growth of 7-10 per cent annually while those of Europe and the United States grew only 3 and 2.5 per cent in the first half of this year.
Because of this, foreign capital continued flowing into countries in the region including Thailand, leading to a strengthening of the regional currencies.
Given these factors, he believed Thailand’s competitiveness would not be affected as the baht and other currencies in the region had moved in the same direction.
Simultaneously, he said local entrepreneurs with foreign debts would benefit from the stronger baht since the debt amount they are obliged to repay would drop in value.
Also, entrepreneurs would enjoy a lower cost of purchasing machinery and raw materials for production.
Mr Satit projected the country’s exports would increase at a slower pace in the second half of this year after a strong growth of more than 40 per cent in the first and second quarters, so it is expected that exports will expand 20 per cent over the entire year.
Although exports will decline, higher consumption and investment can help drive the economy.
Regarding the Central Administrative Court’s decision to allow 74 investment projects in the Map Ta Phut Industrial Estate suspended last year to resume operation, he said the move could help restore foreign investor confidence in Thailand.
Therefore, he believed more foreign capital would flow into Thailand in the second half of the year. (MCOT online news)
