Thai economy likely to remain sluggish in 4th quarter: UTCC

BANGKOK, Oct 2 (TNA) - Thailand’s economy is expected to remain sluggish in the fourth quarter of this year, dampened by the continued US and global economic slowdown due to the financial crisis, according to the University of Thai Chamber of Commerce’s Economic and Business Forecasting Center.

Thanawat Palavichai, the center’s director, said the center had joined up
with the Fiscal Policy Office, the Comptroller General’s Department, and
provincial offices to estimate the fourth-quarter economy and found the
economic slowdown would continue in the last quarter of the year.

He said the global financial crisis would have a direct impact on the
number of foreign arrivals and spending by people in the US and Europe.

The center projected Thailand’s exports next year would grow only 8-10 per
cent compared with 20 per cent expected for this year.

It forecast the overall economy would grow 4-4.5 per cent on an assumption
that the government must accelerate the budget disbursement and restore
confidence, and government politicians are able to bring policies to drive
the economy.

“We believe all countries will spend at least US$1 trillion addressing the
current financial crisis and are confident the global economy will begin
recovering in the first quarter of next year and grow further in the
second quarter,” he said.

Mr. Thanawat conceded the economy in the third quarter of this year had
grown more slowly as a result of political uncertainties, declined private
consumption upon the product price hike, and people’s hardship from
flooding in many areas.

However, the economy in different regions continued growing albeit at a
slower pace partly because the government managed to accelerate budget
disbursement and prices of farm products remained high, he said. (TNA)