ID :
197320
Tue, 07/26/2011 - 13:49
Auther :
Shortlink :
http://m.oananews.org//node/197320
The shortlink copeid
FTI: populist policies may threaten Thai economy in 2012
BANGKOK, July 26 (TNA) - Federation of Thai Industries (FTI) Deputy Chair Tanit Sorat says the Thai economy will continue to grow this year despite risks next year due to populist policies of the next government.
Speaking at the FTI Economic Focus 2011 event on Tuesday, Mr Tanit said the Thai economy expanded well by 4.0-4.2% in the first half of this year and it would continue to grow in the second half as Thai exports exceeded its 15% growth target. He expected the Thai economy to grow by 4.2-4.5% throughout this year and continue over 5% early next year.
Tanit noted however, the next government’s plan to implement populist policies could harm the Thai economy next year as it would cost the nation 1.855 trillion baht in five years (from 2012 to 2016). He explained the scenario may jeopardize national economy in the long run because the government must run on budget deficits in the next 5-6 years. He said the government would have to make the national economy grow by at least 8-10% yearly to be able to fund its populist policies and cap public debts.
Tanit further said the next government’s policy to raise the minimum wage to 300 baht a day nationwide would send operators’ costs up by 10-15% and cause inflation to grow by 3.8-4.5% this year and 5% next year.
Meanwhile, the FTI official added that the Thai economy was still prone to uncertainties in the world economy, particularly from the United States and the European Union, as well as the appreciating value of the Thai baht due to speculative cash inflows. (TNA)
Speaking at the FTI Economic Focus 2011 event on Tuesday, Mr Tanit said the Thai economy expanded well by 4.0-4.2% in the first half of this year and it would continue to grow in the second half as Thai exports exceeded its 15% growth target. He expected the Thai economy to grow by 4.2-4.5% throughout this year and continue over 5% early next year.
Tanit noted however, the next government’s plan to implement populist policies could harm the Thai economy next year as it would cost the nation 1.855 trillion baht in five years (from 2012 to 2016). He explained the scenario may jeopardize national economy in the long run because the government must run on budget deficits in the next 5-6 years. He said the government would have to make the national economy grow by at least 8-10% yearly to be able to fund its populist policies and cap public debts.
Tanit further said the next government’s policy to raise the minimum wage to 300 baht a day nationwide would send operators’ costs up by 10-15% and cause inflation to grow by 3.8-4.5% this year and 5% next year.
Meanwhile, the FTI official added that the Thai economy was still prone to uncertainties in the world economy, particularly from the United States and the European Union, as well as the appreciating value of the Thai baht due to speculative cash inflows. (TNA)
