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Thailand likely to grow 6-7% in 2010, says Siam Commercial Bank chief economist

Thailand’s economy is expected to grow around 6-7 per cent this year, given improvements in many economic indicators, according to a leading economist.

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The Thai economy is expected to grow around 6-7 per cent this year, given improvements in many economic indicators in April and May, according to a leading economist.

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Siam Commercial Bank Executive Vice President and Chief Economist Dr Sethaput Suthiwart-Narueput predicted the country’s gross domestic product (GDP) in the second quarter would expand at least 7 per cent since many economic indicators in April and May picked up and exports in June surged by 40 per cent from the same month last year.

Given these factors, he sees the GDP during the first half of this year growing around 10 per cent year-on-year.

Dr Sethaput said production in the industrial sector is considered a key drive for Thai economic growth at present. The country’s main exports, which are growing satisfactorily now, are industrial products such as vehicles, electronics, electrical appliances, and machinery.

Only will the industrial sector growth contribute to the GDP growth of almost 6 per cent in second quarter of this year, he said.

He allowed some segments of the service sector including hotels and restaurants would be negatively affected by the decreased number of tourists. But other segments including transport and trade would continue expanding due to the recovery of exports and domestic consumption.

Since economic recovery in the first half of this year had been driven by improved industrial production and increased exports, he said, economic growth is likely to ease in the second half of the year in tandem with an expected slowdown of the global economy due to economic fragility in the United States, the  debt crisis in Europe, and Beijing’s efforts to reduce China’s economic heating.

via Thai economy likely to grow 6-7% this year, says SCB chief economist.

The government’s second phase economic stimulus measures under “Thai Khem Khang” or “Stronger Thai 2012” project will help boost the country’s annual economic growth of 1-2.5 per cent during 2010-2012, according to a leading securities analyst.

However, implementation of the measures will raise the public debt to 60 per cent of the gross domestic product (GDP) in 2012, according to Sukit Udomsiri, first executive vice president of Siam City Research Institute, at a special panel discussion on the economic and financial situation

He predicted the planned issuance of the government bonds to absorb the market liquidity would not adversely affect the overall liquidity in the system.

But liquidity is quite likely to tighten next year as the demand for investment funds by the private sector is set to increase as a result of recover in the global economy.

Under the circumstances, he said, the interest rate might to increase next year.

Mr. Sukit believed the Thai economy next year would not be worse than this year as the global economy is forecast to is forecast to enjoy the V-shape turnaround in 2011.

Economics

The Future of Asia: greener but with a public and private debt hangover

The COVID-19 pandemic has been a perfect storm, destroying jobs, worsening poverty and inequality, and creating a public and private debt problem—especially for countries and firms already in fragile financial health beforehand

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The Sydney Opera resumed live performances and the city of Melbourne recently hosted the Australian Open tennis tournament with fans (mostly) in attendance.

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50:50 campaign may not get immediate extension

National News Bureau of Thailand

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BANGKOK (NNT) – The government’s 50:50 co-pay campaign expiring on 31st March may not be getting an immediate campaign extension. The Minister of Finance says campaign evaluation is needed to improve future campaigns.

The Minister of Finance Arkhom Termpittayapaisith today announced the government may not be able to reach a conclusion on the extension of the 50:50 co-pay campaign in time for the current 31st March campaign end date, as evaluations are needed to better improve the campaign.

Originally introduced last year, the 50:50 campaign is a financial aid campaign for people impacted by the COVID-19 pandemic, in which the government subsidizes up to half the price of purchases at participating stores, with a daily cap on the subsidy amount of 150 baht, and a 3,500 baht per person subsidy limit over the entire campaign.

The campaign has already been extended once, with the current end date set for 31st March.

The Finance Minister said that payout campaigns for the general public are still valid in this period, allowing time for the 50:50 campaign to be assessed, and to address reports of fraud at some participating stores.

The Fiscal Police Office Director General and the Ministry of Finance Spokesperson Kulaya Tantitemit, said today that a bigger quota could be offered in Phase 3 of the 50:50 campaign beyond the 15 million people enrolled in the first two phases, while existing participants will need to confirm their identity if they want to participate in Phase 3, without the need to fill out the registration form.

Mrs Kulaya said the campaign will still be funded by emergency loan credit allocated for pandemic compensation, which still has about 200 billion baht available as of today.

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Customs Department Considers Measures to Help SMEs

National News Bureau of Thailand

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BANGKOK (NNT) – The Customs Department is seeking ways to reduce the impact of the exemption on import tax and value-added tax (VAT) for imported goods worth up to 1,500 baht, as such measures are hurting small and medium-sized enterprises (SMEs).

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