CIMB:Thailand's economic growth is up

BANGKOK, September 1 (TNA) - CIMB Thai Bank has adjusted upward its projection of Thailand's economic growth in 2017 to 3.7 per cent year-on-year, from 3.2 per cent, and 3.8 per cent year-on-year in 2018, from 3.5 per cent, thanks mainly to the country's expanding exports and tourism. CIMB Thai Bank Senior Director for Research Amornthep Chawla told journalists of the update on August 31, reasoning that the upward projection is in line with a latest report of the Office of the National Economic and Social Development Board on Thailand's economic growth in the second quarter of this year. Amornthep pointed out, however, that an imbalanced recovery has been observed in the Thai economy, as a slowdown remains in exports of most industrial goods, except electronic products, and in consumption of local farmers and workers in non-farm sectors due to low prices of Thai farm produce, debt repayments and savings as a precaution for possible emergency cases of local farmers and a slow progress of domestic investment projects. The CIMB Thai Bank senior director suggested that the Thai government speed up its new mega-investment projects to stimulate private investment, domestic consumption and the national economic growth in a more balanced and sustainable aspect. Besides, the government should well-handle the appreciation of the Thai baht not to seriously affect rebounding Thai exports and should boost confidence in the expanding Thai economy among consumers and international investors through its clear direction of the long term economic policies that would be carried on after the next general election, including the Thailand 4.0 move and the promotion of local special economic zones. Meanwhile, Pornpen Sodsrichai, Director for Macro-economy of the Bank of Thailand (BOT) said the national economy kept growing in July 2017, boosted by growing Thai exports, at 8 per cent year-on-year, in line with those of other Asian economies. The BOT director noted, however, that low farm produce prices due to oversupply caused a shrink in farmers' income for the first time this year and a slowdown in private investment. According to the BOT director, there is a positive sign on Thailand's declining household debts unless local farmers and low income earners seek new loans. (TNA)