Thailand’s economic growth will possibly be capped at 4 per cent this year given delays in the state’s 2014 budget spending and the planned Bt2 trillion investment on infrastructure development, a leading banker said today.

Teeranan Srihong, Kasikornbank president, said there were no positive signs contributing to internal economic resurrection in the last four months of the year. He forecast Thailand’s economic expansion by 4.5 per cent next year after the global economy gains strength and the government kicks off some investment projects.

“Wars in some countries have toned down, boosting foreign consumers’ confidence. Thailand’s export sector should improve next year if the Thai currency remains weak as it is,” he said.

Mr Teeranan said Thailand’s overall efficiency has neither improved nor worsened – ranked 27th among 60 countries – as surveyed by the Switzerland-based International Institute for Management Development IMD.

Compared to other countries in Southeast Asia, Thailand is third after Singapore and Malaysia due to its lack of infrastructure development.

The government has mapped out investment plans for various projects but they have never been implemented, diminishing Thailand’s competitiveness in the region and creating concerns that the country’s ranking may drop, he pointed out.

The private sector’s proposals on state investment in research and development of products, and human resources development have never been executed by the government, he said. Expressing concerns on household debt, Mr Teeranan said Kasikornbank has closely monitored the financial situation and found that non-performing loans remain controllable while borrowing expansion was on target at 9-11 per cent. MCOT online news

via Kasikornbank predicts disappointing economic growth at 4% this year | MCOT.net | MCOT.net.

The Asian Development Bank ADB will revise its forecast on Thailand’s economic growth for this year from 4.9 per cent to 4-4.3 per cent. Luxmon Attapich, senior ADB economist, said the country’s export growth would be adjusted to 8 per cent due to an export slowdown.

Household debts have also affected domestic spending, she said. Dr Luxmon said global economic revival, particularly in the US and Europe in the second half of the year, should be closely monitored as it would have an impact on Thailand’s exports. Accelerated spending of the national budget in the third and fourth quarters will boost the private sector’s investment while the government’s investment on Bt2 trillion infrastructure projects, if implemented next year, will help move Thailand’s economy forward, she said.

About the author

Leave a Reply

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

Asia’s consumer class is growing fast. This chart shows how

Between the years 2020 and 2030, almost 76 million Indonesians will join the so-called consumer class, a group of people who spend more than $11 (in 2011 PPP dollars) per day. This will cause the country to become the fourth biggest consumer market in the world behind the giants of the field – China, India and the United States.

Southeast Asia to relinquish its lead over Latin America says Moody’s

While the emerging economies of Southeast Asia have outperformed their counterparts in Latin America for most of the past two decades, their lead will slide in the next few quarters as Southeast Asian governments clamp down to fight the pandemic’s lingering second and third waves.

World Bank keeps Thai growth outlook at 1% this year but expects 3.9% in 2022

Thailand’s economy is still expected to grow 1% this year due to the impact of a coronavirus outbreak, but growth is expected to accelerate to 3.9% next year, driven by a recovery in service sector activity, according to the World Bank.