ID :
145337
Sat, 10/09/2010 - 11:51
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http://m.oananews.org//node/145337
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Thai economy expected to grow 7.9% this year: HSBC
BANGKOK, Oct 9 – The Thai economy is expected to enjoy strong growth of 7.9% this year and a slower expansion of 5.3 per cent next year, boosted by increased domestic consumption, according to an analysis report on the Thai economy released by HSBC Bank.
The report said domestic consumption and private investment had become key driving forces in place of exports and state investment for Thai economic growth. Given this factor, it is projected the economy will continue enjoying strong growth.
Still, heating-up economic growth could fuel inflationary pressure although the stronger baht would curb rising inflation to some extent.
With mounting inflationary pressure, it is believed that the Bank of Thailand will begin easing its strict monetary policy and gradually raise the policy interest rate to a normal level.
Given the inflation threat and global economic risks, HSBC Bank expected the Thai central bank would raise the policy interest rate to 2 per cent within this month.
The bank believes the Thai economy enjoys sound growth in the second quarter of this year despite the political disturbances because its long-term economic fundamentals are strong and exports have recovered rapidly.
The country’s exports are set to grow at a slower pace since consumer demand overseas, particularly in Europe and the United States, is likely to decline in the second half of this year.
But exports to other countries in Asia are expected to continue growing, which would help offset a shortfall in the export value. (MCOT online news)
The report said domestic consumption and private investment had become key driving forces in place of exports and state investment for Thai economic growth. Given this factor, it is projected the economy will continue enjoying strong growth.
Still, heating-up economic growth could fuel inflationary pressure although the stronger baht would curb rising inflation to some extent.
With mounting inflationary pressure, it is believed that the Bank of Thailand will begin easing its strict monetary policy and gradually raise the policy interest rate to a normal level.
Given the inflation threat and global economic risks, HSBC Bank expected the Thai central bank would raise the policy interest rate to 2 per cent within this month.
The bank believes the Thai economy enjoys sound growth in the second quarter of this year despite the political disturbances because its long-term economic fundamentals are strong and exports have recovered rapidly.
The country’s exports are set to grow at a slower pace since consumer demand overseas, particularly in Europe and the United States, is likely to decline in the second half of this year.
But exports to other countries in Asia are expected to continue growing, which would help offset a shortfall in the export value. (MCOT online news)
