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143847
Mon, 09/27/2010 - 19:00
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http://m.oananews.org//node/143847
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Finance Ministry increases 2010 GDP target to 7.5%
BANGKOK, Sept 27 - Thailand's Ministry of Finance has revised its projection for Thailand's economic growth this year to 7.5 per cent, up from the 5.5 per cent set earlier thanks to an increase in the country's economy by 10.6 per cent in the first half of this year, Fiscal Policy Office (FPO) Director-General Satit Rungkasiri said Monday.
Goods and service exports in 2010 are likely to expand 13.9 per cent year on year following continuous economic recovery of trade partner countries.
Private investment is expected to rebound to as high as 16.5 per cent annually since production capacity is likely to increase in line with orders from overseas, the director-general said.
Although private consumption was affected by a political turmoil in the second quarter, it is likely to grow 5.2 per cent this year thanks to higher employment. Farmer income is also likely to improve due to higher prices of agricultural goods in the global market. Inflation in 2010 is expected to stay at around 3.4 per cent as oil prices are likely to increase.
Imports are projected to rise 35.6 per cent per year as domestic spending is expected to increase. Exports are projected to grow 25 per cent per year.
The Thai baht is expected to stay at around Bt30 per USD against an average of Bt31.7 per USD this year, while the short-term interest rate is likely to be two per cent at year end.
The economy in 2011 is forecast to grow 4.5 per cent, supported by growing domestic spending in 2010. Private consumption will grow 4.2 per cent per year due to recovery of consumer confidence. Private consumption is however forecast to grow 5.9 per cent year on year thanks to the world economic growth. Goods and service exports next year will expand to 5.4 per cent.
However, strengthened baht remains one of the risk factors. If the Thai
currency gains one per cent, it will have an impact on exports which are
likely to reduce by 0.4 per cent and GDP will drop by 0.3 per cent.
Political situation including protests is another risk factors. (MCOT online news)
Goods and service exports in 2010 are likely to expand 13.9 per cent year on year following continuous economic recovery of trade partner countries.
Private investment is expected to rebound to as high as 16.5 per cent annually since production capacity is likely to increase in line with orders from overseas, the director-general said.
Although private consumption was affected by a political turmoil in the second quarter, it is likely to grow 5.2 per cent this year thanks to higher employment. Farmer income is also likely to improve due to higher prices of agricultural goods in the global market. Inflation in 2010 is expected to stay at around 3.4 per cent as oil prices are likely to increase.
Imports are projected to rise 35.6 per cent per year as domestic spending is expected to increase. Exports are projected to grow 25 per cent per year.
The Thai baht is expected to stay at around Bt30 per USD against an average of Bt31.7 per USD this year, while the short-term interest rate is likely to be two per cent at year end.
The economy in 2011 is forecast to grow 4.5 per cent, supported by growing domestic spending in 2010. Private consumption will grow 4.2 per cent per year due to recovery of consumer confidence. Private consumption is however forecast to grow 5.9 per cent year on year thanks to the world economic growth. Goods and service exports next year will expand to 5.4 per cent.
However, strengthened baht remains one of the risk factors. If the Thai
currency gains one per cent, it will have an impact on exports which are
likely to reduce by 0.4 per cent and GDP will drop by 0.3 per cent.
Political situation including protests is another risk factors. (MCOT online news)