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The Thai economy is projected to continue growing in the rest of the year in tandem with regional economic expansion, according to a top banker.
Bangkok Bank (BBL) president Chartsiri Sophonpanich said the baht would strengthen further in response to the economic growth and in the same direction with regional currencies.
However, state agencies concerned had attempted to oversee the baht to ensure it moves in consistence with other currencies in Asia.
How much the baht will strengthen depends on market conditions, he said, adding that the bank advised its customers to hedge against the currency exchange rate risk to ease impacts of the stronger baht.
Mr Chartsiri said the bank projected its loans would grow 4-6 per cent for the whole year with a focus on extending corporate, business, retail trade, and personal loans.
Sathit Uthaisiri, advisor to the BBL executive chairman, predicted the Thai economy would expand 7 per cent this year with the first and second quarters seeing the economy grow 12 per cent and 10 per cent in a row.
Export sector would remain a key driver for the economic growth as it is expected to expand 18-20 per cent for the whole of this year.
Thailand’s exports surged 37 per cent in the first half of this year with Asia becoming the key export destination in place of the United States and Europe, which are experiencing economic uncertainties.
The Thai economy is likely to grow rather significantly in a range of 6.4-7.2 per cent this year although the global economy remains
volatile, according to the Thailand Development Research Institute (TDRI).
TDRI research director for macroeconomic development Somchai Jitsuchon said the institute had estimated economic growth for 2010 and 2011 based on
the challenging macroeconomic management.
He said that global economic recovery had been shaken by the debt crisis in Europe. Whether the world economy would continue picking up depends on
the recovery of key economies such as the United States.
The global economic uncertainties could affect Thailand’s economic outlook, he said, however, adding that TDRI remained optimistic the Thai economy
would expand at a rather high rate of 6.4-7.2 per cent this year with the inflation rate staying at 3-3.5 per cent.
Thailand Ministry of Commerce has set a target to boost export growth by 10-15 per cent next year to ensure the country’s economy expands no less than 7 per cent.
Commerce Minister Pornthiva Nakasai revealed during the occasion of the 90th anniversary of its the establishment, the ministry had adopted a constructive commercial policy to enhance Thailand’s competitiveness under which 10 strategies would be used to fulfill that goal.
They include environmentally friendly business performance, increase added value to goods and services, constructive economy-based business operations, logistics development, and a drive for border trade growth
A main objective is to prepare Thailand to join the ASEAN Economic Community in 2015.
The ministry is determined to drive economic growth of at least 7 per cent next year under the assumption that exports grow 10-15 per cent, the inflation rate stays at 3-3.5 per cent, an increase the value of farm products by 10 per cent and border trade by 10 per cent.
In terms of regional economic integration, ASEAN is a significant market of 580 million consumers, which will benefit from the remarkable economic momentum and progress of China and India.
East Asias fast-expanding role on the world stage has also been underscored by increasing regional economic cooperation, robust domestic consumption and coordinated government stimulus measures.In terms of regional economic integration, ASEAN is a significant market of 580 million consumers, which will benefit from the remarkable economic momentum and progress of China and India.
The target for ASEANs economic integration is 2015.In addition, East Asia of which ASEAN is an integral part has emerged as a new global economic powerhouse in the wake of the 2009 global economic crisis, which resulted in a sharp downturn in consumer demand in the West.In what appears to be a new growth model, East Asia has focused on domestic consumption and intra-regional trade as new solutions.