Bank of Thailand Upbeat on Growth

The central bank is now more optimistic about economic growth this year, believing it has high potential to reach 2%, up from earlier projections of 1.5%.

Bank of Thailand governor Prasarn Trairatvorakul told the Thailand Focus 2014 forum 2% growth was achievable if the economy grew by 3-4% in the second half. Previous projections assumed slow public spending and poor sentiment for domestic spending and exports.

But the Thai economy has proven it can resume its full growth potential, he said, reiterating the NCPO had not pressured the central bank to increase economic growth. Thailand’s economy has the potential to grow by 4% to 4.5% annually, but political instability and natural disasters occasionally stifle growth, said Mr Prasarn.

“Stimulus measures should facilitate productivity without too much of a burden, comprising infrastructure development, accelerating fiscal expenditures and stimulating private investments,” he said.

Thailand’s macroeconomic fundamentals remain sound, said Mr Prasarn, citing low inflation, minimal unemployment, a strong commercial banking sector, a manageable public debt ratio and relatively high foreign reserves.

Originally Published in Bangkok Post, August 28, 2014
http://www.bangkokpost.com/business/finance/429097/bot-upbeat-on-growth

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