BOT:Thai economy is picking up

BANGKOK, June 12 (TNA) - The Bank of Thailand (BOT) says that the national economy is gradually picking up, while the private sector urges the army-led National Council for Peace and Order (NCPO) to shift from production to service businesses in its move to reform the Thai economy. Speaking at the Euromoney Conference:The Greater Mekong Investment Forum, held in Bangkok on Thursday, Bank of Thailand (BOT) Governor Prasarn Trairatvorakul acknowledged that the Thai economy has started to show positive signs, but its growth should not be fast this year. Prasarn pointed out that consumers now have more confidence, but household spending has not yet returned to normal because household debts remain high. Prasarn noted that the national fiscal sector is now moving forward, with disbursements of the 2015 state budget to begin in October 2014 as planned and to fully benefit the national economy next year, when domestic investment should also fully recover although overseas funds are returning to the Stock Exchange of Thailand (SET), as the private sector is waiting for a clear roadmap implementation of the NCPO. The BOT governor also projected that Thai exports should grow this year, but they should return to be a main force driving the national economy next year, when the global economy and the economic situation of trading partners are also expected to fully recover. According to the BOT chief, the central bank's Monetary Policy Committee (MPC) will review its national economic growth rate forecast on June 18. Earlier the MPC expected the Thai economy should grow by lower than 2.7 per cent this year. The BOT chief opined that the central bank's low key interest rate at 2 per cent now is suitable to help stimulate the national economy, recommending that in the medium term Thailand should solve weaknesses to enhance national competitiveness, while allowing domestic fuel prices to move in accordance with the market mechanism. Meanwhile, the private sector foresaw that Thailand's gross domestic product (GDP) should grow by 2.5 per cent this year, urging the NCPO to handle the national economic reform by shifting from the domestic production to the service sector. (TNA)