Finance Ministry projects 3% GDP growth

BANGKOK, September 16 (TNA) -- The Thai economy should grow by 3% this year and measures to inject money to low-income earners should unexpectedly boost the gross domestic product of the country, said Rungson Sriworasat, Permanent Secretary for Finance. The Government Savings Bank and the Bank for Agriculture and Agricultural Cooperatives were ready to lend 60 billion baht to low-income people through their village and community funds. The money injection together with lending for small and medium enterprises and other economic stimulus measures worth 136 billion baht should result in the 3% GDP growth of Thailand this year, he said. Although private research centres forecasted the economic expansion of 2.5-2.7%, the GDP growth could actually even exceed 3%, Mr Rungson said. He did not think that the Federal Reserve Board of the United States would raise its repurchase rate during its meeting on Sept 16 and 17. Even if the interest rate increased, Thailand would be able to cope with capital outflows thanks to its stable financial status with 202 billion baht in its treasury reserve and capital worth 700-800 billion baht in the economic system, Mr Rungson said. (TNA)