CIMB:Thai economy is mainly affected by slow global recovery

BANGKOK, September 18 (TNA) - Malaysia-based CIMB Thai Bank has predicted that Thailand's gross domestic product (GDP) should now grow by 2.8 per cent on average this year and by 3.4 per cent on average next year due to impacts from the slow global economic recovery. CIMB Thai Bank's Executive Vice President Banluesak Pussarangsi made the projection on Wednesday, describing that the Thai economy should increase by only 2.8 per cent in 2013, instead of 3.4 per cent anticipated earlier, because the national economic growth rate in the third quarter of this year is likely to lower than that in the second quarter amid the slow world economic recovery and a recent end of the Thai government's economic stimulus. Banluesak also foresaw that Thai exports should grow by 4.2 per cent on average this year. According to senior banker, the Thai economy should, however, expand slightly in the fourth quarter of this year and the first quarter of next year, making the national economy likely to grow by 3.4 per cent on average in 2014, when Thai exports should also expand at 5 per cent and should keep growing at its low rates over the next couple of years. The senior Thai banker also predicted that the Thai baht value should appreciate to 31.50 baht a US dollar by the end of 2013, but should depreciate to 32.50 baht a US dollar by the end of 2014. Meanwhile, the Federation of Thai Industries (FTI) reported that the Thai industries sentiment index (TISI) stood at 91.3 points in August 2013, down from 91.9 in July and at its lowest level in 22 months. FTI Chairman Payungsak Chartsutipol acknowledged that, as of August 2013, the TISI had remained below 100 for 14 consecutive months, resulting from local business operators' concerns over a slowdown in the global economic recovery, political violence in the Middle East and a drop in domestic consumption and Thai exports, but rising costs, especially those of small and medium-sized enterprises (SMEs). (TNA)