ID :
173169
Tue, 04/05/2011 - 11:16
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Shortlink :
http://m.oananews.org//node/173169
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World Bank expects Thai economy will grow by 3.7% this year
BANGKOK, April 5 (TNA) - The World Bank has predicted the Thai economy will grow this year by 3.7%, instead of the 3.2% increment it forecast in late 2010.
World Bank head economist for Thailand Frederico Gil Sander said despite the high prices of food and oil worldwide, the expected economic growth was increased because the Thai economy depended not only on exports but also on local demand. The high price of agricultural products was increasing farmers’ income and boosting local consumption.
However, the Thai economy still faces risks from oil prices which will further rise if situations in the Middle East and Northern Africa deteriorate. That will worsen public debt in Europe, and the United States' economic crisis. Thailand is also exposed to negative impacts, from the Japan earthquake, on automotive and electronic industries’ supply chains.
The World Bank did not included the flooding in southern Thailand in its economic growth forecast. It admits the flooding has impacts on agriculture and tourism, but notes quick rehabilitation can limit the impacts.
Sander also commented controls on diesel price and Thai export growth from demand in global markets, cushioned the economic impacts of food and oil prices which soared early this year. If oil prices continue to soar, it will affect people nationwide. The government can relieve the impact by spending its limited budget on helping the most vulnerable people. He argues this approach is more effective than the costly diesel price subsidy policy. (TNA)
World Bank head economist for Thailand Frederico Gil Sander said despite the high prices of food and oil worldwide, the expected economic growth was increased because the Thai economy depended not only on exports but also on local demand. The high price of agricultural products was increasing farmers’ income and boosting local consumption.
However, the Thai economy still faces risks from oil prices which will further rise if situations in the Middle East and Northern Africa deteriorate. That will worsen public debt in Europe, and the United States' economic crisis. Thailand is also exposed to negative impacts, from the Japan earthquake, on automotive and electronic industries’ supply chains.
The World Bank did not included the flooding in southern Thailand in its economic growth forecast. It admits the flooding has impacts on agriculture and tourism, but notes quick rehabilitation can limit the impacts.
Sander also commented controls on diesel price and Thai export growth from demand in global markets, cushioned the economic impacts of food and oil prices which soared early this year. If oil prices continue to soar, it will affect people nationwide. The government can relieve the impact by spending its limited budget on helping the most vulnerable people. He argues this approach is more effective than the costly diesel price subsidy policy. (TNA)
