ID :
179309
Mon, 05/02/2011 - 11:34
Auther :
Shortlink :
http://m.oananews.org//node/179309
The shortlink copeid
Thailand 2011 GDP growth estimate revised up to 4-4.5%
BANGKOK, May 2 (TNA) - Thai Chamber of Commerce has adjusted this year’s GDP growth expectation to 4-4.5%.
Thanavath Phonvichai, director of the Center for Economic and Business Forecasting of the University of the Thai Chamber of Commerce, said his center will announce on Tuesday its updated expectation of the gross domestic product (GDP) growth of Thailand this year.
The center changed the expected growth from 4-5% or 4.2% to 4-4.5%. The center’s positive viewpoint on the Thai economy is due to the good global economic expansion. It believes that the United States economic problem and the public debt burden of Europe will soon be relieved.
Meanwhile, he said, the general election will result in 40-50 billion baht changing hands through both direct and indirect economic activities. The situation will help boost the economic growth.
Thanavath said a remaining risk factor, however, is rapid inflation due to higher oil and product prices. This will prompt the Bank of Thailand (BOT) to raise its interest rate further to control inflation. The movement will affect the costs of operators who cannot raise their product prices due to fierce competition and the government’s request for frozen product prices.
According to Thanavath, the Thai baht has not appreciated significantly and thus allows Thai exports to grow well. The baht value can be stronger in the second half of this year, ranging from 29 to 29.50 baht against the US dollar.
In the mean time, he said, oil prices will remain high because of problems in the Middle East and Africa and the expansion of the global economy. The crude price should move between 105 and 110 US dollars per barrel.
“Despite rising prices of products and consumer goods, consumers’ confidence should not drop significantly because the government still controls the diesel price and manufacturers and operators cannot raise their product prices. Although the cost of living has negative impacts, there is no major risk,” the Thai economist said. (TNA)
Thanavath Phonvichai, director of the Center for Economic and Business Forecasting of the University of the Thai Chamber of Commerce, said his center will announce on Tuesday its updated expectation of the gross domestic product (GDP) growth of Thailand this year.
The center changed the expected growth from 4-5% or 4.2% to 4-4.5%. The center’s positive viewpoint on the Thai economy is due to the good global economic expansion. It believes that the United States economic problem and the public debt burden of Europe will soon be relieved.
Meanwhile, he said, the general election will result in 40-50 billion baht changing hands through both direct and indirect economic activities. The situation will help boost the economic growth.
Thanavath said a remaining risk factor, however, is rapid inflation due to higher oil and product prices. This will prompt the Bank of Thailand (BOT) to raise its interest rate further to control inflation. The movement will affect the costs of operators who cannot raise their product prices due to fierce competition and the government’s request for frozen product prices.
According to Thanavath, the Thai baht has not appreciated significantly and thus allows Thai exports to grow well. The baht value can be stronger in the second half of this year, ranging from 29 to 29.50 baht against the US dollar.
In the mean time, he said, oil prices will remain high because of problems in the Middle East and Africa and the expansion of the global economy. The crude price should move between 105 and 110 US dollars per barrel.
“Despite rising prices of products and consumer goods, consumers’ confidence should not drop significantly because the government still controls the diesel price and manufacturers and operators cannot raise their product prices. Although the cost of living has negative impacts, there is no major risk,” the Thai economist said. (TNA)
