FPO: Stimulus can boost GDP to 2%

Economic growth is likely to reach 2% this year if stimulus measures that will come into force in the fourth quarter are taken into account, says the Finance Ministry’s think tank.

Without these short-term measures, GDP will expand by at least 1.6% this year, said Kritsada Jinavijarana, director-general of the Fiscal Policy Office (FPO).

The stimulus will include accelerating disbursement of the leftover budget of 90 billion baht from fiscal 2005-13, another 100 billion from fiscal 2014 and budget expenditure in the first quarter of fiscal 2015.

Mr Kritsada said exports, accounting for 70% of GDP, were likely to record minimal growth this year, below the FPO’s forecast of 1.5%, so the stimulus must be efficient in driving growth to
offset weak exports.

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