Thailand’s economic growth projected at 5.5% this year

The International Monetary Fund (IMF) projects that Thailand’s economic growth in 2012 will be 5.5 percent, but warned that significant downside risks still remain due to uncertainties from the global economy and the progress of flood-prevention measures, according to the Bank of Thailand (BoT). The BoT said in a statement that the IMF Executive Board on April 27 concluded an Article IV Consultation with Thailand and commented that that the Thai authorities’ policy response to last year’s floods has propelled the strong recovery.

The IMF said that Thailand’s economic growth is projected at 5.5 and 7.5 percent in 2012 and 2013, respectively. While the short-term outlook is favorable, significant downside risks remain due to uncertainties related to the global economy and the progress of flood-prevention measures. The current expansionary fiscal and monetary stances are appropriate, BoT said. However, the authorities should reduce their supportive policy roles as the recovery takes hold and move to a medium-term consolidation path. The main challenge is to speed up reconstruction while maintaining macroeconomic stability and promoting inclusive growth, the IMF said.

In addition, IMF Managing Christine Lagarde warmly welcomed the joint statement issued by Indonesia, Malaysia and Thailand supporting the broad-based international cooperative effort to increase the resources of the IMF for precautionary and crisis resolution purposes and also will undertake the necessary domestic consultations to join this international effort.

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