ID :
151245
Fri, 11/26/2010 - 09:56
Auther :
Shortlink :
http://m.oananews.org//node/151245
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Baht likely to reach 26-27 to US dollar next year: UTCC forecast
BANGKOK, Nov 26 – The baht is set to continue appreciating and will likely reach 26-27 to the US dollar next year, as the global economy remains fragile due to economic uncertainties in the United States and Europe, according to a leading economic forecaster.
Thanawat Polvichai, director of the University of Thai Chamber of Commerce’s Economic and Business Forecasting Center, said the economic volatilities faced by the US and Europe could cause the world economy to grow only 2% next year instead of 3-4 per cent as earlier expected.
He said the stronger baht would have an adverse impact on Thailand’s exports, which are forecast to grow only 8 per cent against 10-13 per cent as previously projected.
Simultaneously, global oil prices are likely to surge to US$100 per barrel. Given these factors, Thailand’s gross domestic product (GDP) is expected to grow around 4 per cent. Local consumption and tourism are expected to serve as major driving forces in place of exports for economic growth.
Because of this, Thanawat said, the Bank of Thailand needs to intervene in the baht movement, come up with a tax measure to stem speculation, encourage investment overseas, and help small- and medium-size enterprises (SMEs) affected by the baht surge.
Dr Thanawat said SMEs need to adjust themselves to the changing business environment. They must closely assess business risks, take advantage of new technology for production, as well as try to understand and catch up with market trends. (MCOT online news)
Thanawat Polvichai, director of the University of Thai Chamber of Commerce’s Economic and Business Forecasting Center, said the economic volatilities faced by the US and Europe could cause the world economy to grow only 2% next year instead of 3-4 per cent as earlier expected.
He said the stronger baht would have an adverse impact on Thailand’s exports, which are forecast to grow only 8 per cent against 10-13 per cent as previously projected.
Simultaneously, global oil prices are likely to surge to US$100 per barrel. Given these factors, Thailand’s gross domestic product (GDP) is expected to grow around 4 per cent. Local consumption and tourism are expected to serve as major driving forces in place of exports for economic growth.
Because of this, Thanawat said, the Bank of Thailand needs to intervene in the baht movement, come up with a tax measure to stem speculation, encourage investment overseas, and help small- and medium-size enterprises (SMEs) affected by the baht surge.
Dr Thanawat said SMEs need to adjust themselves to the changing business environment. They must closely assess business risks, take advantage of new technology for production, as well as try to understand and catch up with market trends. (MCOT online news)
