ID :
187255
Wed, 06/08/2011 - 14:01
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http://m.oananews.org//node/187255
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WB maintains Thailand's economic growth projection at 3.7%
BANGKOK, June 8 (TNA) - The World Bank has maintained its forecast of Thailand's economic growth this year at 3.7 per cent and warned of rising inflation in the Thai economy.
The Washington-based World Bank said in its latest report on the global economic outlook, published Wednesday, that Thailand's economic growth has slowed down since the second quarter of this year due to impacts from twin natural disasters in Japan, a massive earthquake and tsunami on March 11, although the Thai economy grew higher than expected in the first quarter of 2011.
The World Bank cautioned that risk factors remain in the Thai economy in the second half of this year, including impacts from the problem of public debts in Europe, the slowdown of the Chinese economy due to strict monetary measures implemented by Beijing, rising oil prices and uncertain political developments in the country's after the forthcoming national poll, set on July 3.
Hans Timmer, director of the World Bank’s Development Prospects Group, warned against huge government spending promised by Thai political parties during their ongoing electoral campaigns, saying that the practice would increase public debts and affect Thailand's long-term economic growth. Timmer suggested that food subsidies would be costly for the Thai government, recommending, instead, that food assistance should only be for the poor and a ban should be imposed on Thai food exports to some countries to prevent domestic food shortages.
Frederico Gil Sander, a country economist of the World Bank for Thailand, said inflation would continue to rise in the country, as the Thai government was gradually withdrawing its control on products' prices and diesel. However, Sander noted that the Bank of Thailand (BOT) can control inflation and prevent a crisis on rising costs of living.
Meanwhile, the World Bank predicted that the world economy will grow by 3.2 per cent this year and 3.6 per cent next year, and that the economy of East Asia and the Pacific region will similarly grow by some 8.5 per cent this year. (TNA)
The Washington-based World Bank said in its latest report on the global economic outlook, published Wednesday, that Thailand's economic growth has slowed down since the second quarter of this year due to impacts from twin natural disasters in Japan, a massive earthquake and tsunami on March 11, although the Thai economy grew higher than expected in the first quarter of 2011.
The World Bank cautioned that risk factors remain in the Thai economy in the second half of this year, including impacts from the problem of public debts in Europe, the slowdown of the Chinese economy due to strict monetary measures implemented by Beijing, rising oil prices and uncertain political developments in the country's after the forthcoming national poll, set on July 3.
Hans Timmer, director of the World Bank’s Development Prospects Group, warned against huge government spending promised by Thai political parties during their ongoing electoral campaigns, saying that the practice would increase public debts and affect Thailand's long-term economic growth. Timmer suggested that food subsidies would be costly for the Thai government, recommending, instead, that food assistance should only be for the poor and a ban should be imposed on Thai food exports to some countries to prevent domestic food shortages.
Frederico Gil Sander, a country economist of the World Bank for Thailand, said inflation would continue to rise in the country, as the Thai government was gradually withdrawing its control on products' prices and diesel. However, Sander noted that the Bank of Thailand (BOT) can control inflation and prevent a crisis on rising costs of living.
Meanwhile, the World Bank predicted that the world economy will grow by 3.2 per cent this year and 3.6 per cent next year, and that the economy of East Asia and the Pacific region will similarly grow by some 8.5 per cent this year. (TNA)
