Private sector sees growing Thai exports, economy

BANGKOK, October 3 (TNA) - Thailand's exports and economy have been growing more than expected this year, while the country's inflation remains low. Chen Namchaisiri, Chairman of the Federation of Thai Industries (FTI), told journalists of the positive trend on Tuesday, after a meeting of the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB). Chen said the JSCCIB, thus, decided to raise its projection of Thailand's export growth and economic expansion this year to 6.5-7.5 per cent year-on-year and 3.7-4.0 per cent year-on-year on average respectively. Earlier, the key tripartite private institution forecast that Thailand's export and economic growth should stand around 3.5-4.5 per cent year-on-year and 3.5-4.0 per cent year-on-year on average respectively in 2017. The FTI chief pointed out that Thai exports are likely to keep expanding until the end of 2017 after having been growing well more than earlier expected during the first eight months of this year, thanks to the recovering economies of the country's major trading partners, coupled with the expanding domestic tourism, consumption and private investment. The FTI chief cautioned, however, that there are remaining risk factors of Thailand's export and economic growth this year, including impacts from the changing political situation in the United States, Germany and Japan, as well as the current nuclear tension in the Korean Peninsula, which could affect the country's financial and currency markets, as well as export and national economic growth consequently. For inflation, the JSCCIB's Tuesday meeting resolved to lower its projection of Thailand's average inflation in 2017 to 0.5-1.0 per cent, from the earlier forecast of 0.5-1.5 per cent. Meanwhile, Pridi Daochai, Chairman of the Thai Bankers Association (TBA), assessed that the Thai currency should stand at about 34 baht a US dollar in late 2017, as Thailand's key interest rate should remain at 1.5 per cent annually despite the increasing capital inflows and the anticipatedly rising key US interest rate. (TNA)