BOT:Thai economy should grow 3.5% in 2016

BANGKOK, February 11 (TNA) - The Bank of Thailand (BOT) projects that the Thai economy in 2016 should continue recovering gradually and sustaining growth at 3.5 per cent, on top of its 2.8 per cent growth last year. Delivering a speech on Thailand's economic prospect and BOT tasks in 2016, BOT Governor Veerathai Santiprabhob made the projection on Thursday, saying that the national economy this year should be mainly boosted by the domestic tourism and consumption, as well as investment in the public sector. Veerathai stressed that the domestic tourism would keep growing this year, cushioned especially by Chinese tourists, while Thai exports should remain stable. Veerathai acknowledged that declining global oil prices are considered positive to Thailand, pointing out that Thailand's imports fell 18 billion US dollars in value, improving the country's trade balance. According to the BOT governor, it is expected that consumer confidence should improve in 2016, especially consumption in perishable goods and service sectors, and that the rebounding Thai economy would not yet benefit the local agricultural sector and the prices of Thai farm products on the world market should remain low. The BOT governor cautioned, however, this year's drought would depress local farmers’ income, raising debts of those living in rural areas and low-income earners. Besides, global monetary markets should remain in volatility this year, while the Thai economy should not be much affected, when compared to other developing countries, because Thailand's economic foundamentals remain strong. The BOT governor revealed that the Thai central bank would simultaneously monitor the global economic situation. Meanwhile, the Thailand Development Research Institute (TDRI) also forecast that the country’s gross domestic product (GDP) in 2016 should grow 3.5 per cent. Kirida Bhaopichitr, Research Director for TDRI’s International Research and Advisory Service, warned that risk factors which need to be closely monitored include impacts from China’s economic slowdown, coupled with problems of European financial institutes, while expected serious drought in Thailand might affect low-income earners in the country. (TNA)