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Thailand’s GDP growth forecast now only 1%

The National Economic and Social Development Board (NESDB) says economic growth in 2014 will be a mere one percentage point against 2.9 percent last year.

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The National Economic and Social Development Board (NESDB) says economic growth in 2014 will be a mere one percentage point against 2.9 percent last year.

In its report on economic outlook released Monday, the NESDB  revised down its projection for Thailand’s economic growth in 2014 from 1.5-20 percent to 1 percent.

NESDB Secretary-General Arkom Termpitayapaisit said the new projection was based on the country’s economic performance in the third quarter and in the first nine months of this year.

thailandgdpgrowth20882014

He said Thailand’s gross domestic product (GDP) expanded by 0.6 percent in the third quarter from July-September period and by 0.2 percent from January-September period.

The economic growth continued its rally from the second quarter, Mr Arkom said, attributing the expansion during the July-September period to strong rebound in private investment.

Private investment expanded by 3.9 percent in the third quarter after plunging below the red line for four consecutive quarters.

But he said NESDB projects that the Thai economy will grow by 3.5-4.5 percent next year thanks to exports which are likely to perform well in line with the global economic recovery; the government’s tourism promotion campaign; and expansion by firms that have received promotional privileges from the government.

Meanwhile, Bank of Thailand (BoT)  spokesperson Jirathep Seniwong na Ayutthaya said the central bank will also revise down its projection for Thailand’s economic growth in 2014 as the country’s GDP growth in the third quarter as revealed by NESDB was lower than the bank’s projection of 1.5 percent.

Central bank  governor Prasarn Trairatvorakul also voiced  concern over growing household debt in the country.

Household debt has expanded rapidly in the country over the past 4-5 years, indicating that there are problems in the people sector, he said.

Growth in household debt is also close to the level of GDP growth, he noted. The central bank will monitor  loan extension by commercial banks after finding that interest rate on loans to households are as high as 15-20 percent.

Rice scheme losses and household debt

Thai economy remains weighed down by huge losses caused by the rice purchase program of the previous government (between 700 billion and 1 trillion baht) that hamper public investment and household debt that hinders private consumption.
Only exports and private investment are likely to boost growth, but exports are suffering at this time of weak growth in Japan and the countries of the EU, and the slowdown in China.

 

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Economics

Thailand’s Ministry of Finance expects 3.5 to 4.5% economic growth in 2022

For next year, the Ministry of Finance is projecting an economic growth of 3.5-4.5% from effective pandemic control measures, incentives, domestic spending, the export sector, private investment support, global economic recovery, and government expenditures.

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The Minister of Finance says Thailand’s economy this year would see only a 1.1-1.2% growth

BANGKOK (NNT) – The Ministry of Finance is now projecting an economic rebound to 4.5% growth next year, with government investments serving as key drivers. The Minister of Finance says the government will focus more on inclusive growth next year, with no sectors left behind.

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Ecommerce

Pakorn Peetathawatchai, President, The Stock Exchange of Thailand (SET)

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Pakorn Peetathawatchai, President, The Stock Exchange of Thailand (SET)

What measures has SET taken to support listed companies’ compliance with ESG standards?
PAKORN PEETATHAWATCHAI:

PAKORN: When we first began promoting ESG-compliant investments, we were met with little interest. We attributed this to a lack of clear data to showcase the economic benefits of ESG investment, and perhaps limited clarity as to what constitutes a sustainable or ESG-compliant investment. The launch of the THSI list and, subsequently, the SETTHSI Index, was designed to address this. Our most recent data, comparing returns for the SETTHSI Index with the broader SET and SET100 indices from April 2020 to April 2021, underscores the economic benefits of these investments: the group compliant with ESG standards outperformed the other two indices on every data point. 

As of May 2021 Thailand was home to CG and ESG assets under management totalling BT54.8bn ($1.7bn) across 50 funds – up from 23 funds in 2019. Meanwhile, of the BT187.1bn ($5.9bn) raised in green, social and sustainability bonds since 2018, BT136.4bn ($4.3bn) was raised in 2020 – 83% from the government and the remainder from development banks and private players. This rising demand, in a move to manage risk and generate returns, has been complemented by growing supply and promotion: supply from ESG-compliant businesses aiming for resiliency and sustainable growth, as well as promotion from regulators highlighting investment opportunities with good CG and SD practices. Indeed, the pandemic has been a catalyst in shifting the view of ESG compliance from a luxury to a requirement in the new normal.

In what ways can enhanced standard-setting and regulatory mechanisms overcome the remaining barriers to improved ESG performance?

PAKORN: A multi-stakeholder approach is crucial for enhanced ESG performance – not only in Thailand, but around much of the globe. This can also help to address the standout incumbent challenge: access to reliable, wide-ranging ESG data. For example, the 2020 update to the 56-1 One Report established clear ESG standards and triggered online and offline capacity-building programmes to support listed firms’ compliance. SET is developing an ESG data platform with a structured template to promote the availability of comparable data, maximise value added from corporate sustainability disclosures, and foster collaboration between the business value chain and stakeholders. This is expected to support Thai companies along their ESG journey in an economically sustainable way, result in a greater number of sustainability-focused products and services, drive sustainable investing in the Thai investment community and ultimately “make the capital market work for everyone”, as outlined in the SET’s vision.
 

 

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