Growing Thai economy foreseen by BOT, private sector

BANGKOK, June 1 (TNA) - The Bank of Thailand (BOT) and most executives of listed firms have foreseen the growing Thai economy this year, thanks mainly to the country's expanding exports. BOT's chief of macroeconomic department Pornpen Sodsrichai told journalists on May 31 that Thailand's export growth of 5.9 per cent year-on-year in April 2017 helped cushion the national economic growth in the same month. Pornpen attributed the country's sound export prospect to growing demand from overseas markets, boosted mainly by the rising prices of such key agricultural commodities as rice, sugar and rubber products, as well as increasing purchase orders of mobile phones and telecommunication equipment produced by Japanese firms that have relocated to invest in Thailand. The BOT senior official forecast that the export-driven Thai economic growth should continue through the second quarter of this year, as purchasing power of overseas consumers remain high. The BOT senior official dismissed concerns raised by some parties that the strengthening Thai baht should dampen Thai exports, pointing out that the changing value of the Thai currency is in line with other currencies in the region and should not, thus, seriously affect shipments of Thai goods and services overseas. The BOT senior official said, however, that the Thai central bank has closely monitored private consumption in the country, as stable income of people in non-farm sectors, coupled with stable investment in the domestic construction sector, in particular, could affect the national economic growth prospect later this year. Meanwhile, Senior Executive Vice President of the Stock Exchange of Thailand (SET) Pakorn Peetathawatchai told reporters that a latest SET survey found most chief executive officers (CEOs) of companies listed on the Thai bourse anticipated national economic growth rate at 3-4 per cent year-on-year on average in 2017, the figures of which are comparable to those forecast by BOT and the World Bank. According to the SET senior executive vice president, most of the listed firms' CEOs viewed the government's spending and fiscal policy, as well as growing domestic tourism to become major forces to drive ahead Thailand's economic growth this year. The SET executive cautioned, however, that most CEOs considered unstable domestic purchasing power, as well as global economic and political conditions remaining to become risk factors for the expanding Thai economy. (TNA)