ADB:Thai economy should grow 4.1% in 2016

BANGKOK, March 24 (TNA) - The Manila-based Asian Development Bank (ADB) has predicted that Thailand's gross domestic product (GDP) should grow by 4.1 per cent next year on a condition that the country's new general election happens in early 2016 and the new government issues sound economic policies. Luxmon Attapich, Thailand-based ADB senior economist, told journalists on Tuesday that the Thai economy has been rebounding slowly due to stable politics, government investment, declining global oil prices and recovering domestic tourism. Luxmon said ADB sees that Thailand's industrial exports are improving, predicting that Thai exports should, thus, expand by 3.5-4 per cent next year. Luxmon reported that ADB, however, revised Thailand's GDP growth this year to 3.6 per cent, instead of 3.9 per cent as earlier anticipated, because Thai exports are likely to expand slowly by 1-2 per cent, instead of 3-4 per cent as earlier expected, and domestic consumption has not picked up yet. According to the senior economist, ADB also sensed that consumers' confidence in Thailand remained weak in the first two months of this year because local farm products are cheap and household debts are high, projecting that private consumption should grow by 2.5 per cent, but inflation should remain low at 0.2 per cent, thanks to low oil prices. The ADB senior economist assessed that Thailand's economic growth this year should depend on government investment, which should expand by 7.5 per cent, after a decline last year, pointing out the administration's planned construction under its 3-trillion-baht transport development scheme and small economic stimulus projects. Besides, ADB foresaw that private investment in Thailand should edge up slowly at 3.5 per cent this year. (TNA)