SCB maintains Thailand’s GDP at 2.5%

BANGKOK, April 26 (TNA) -- As Thailand’s export for 2016 is projected to contract 2.1 per cent coupled with sluggish domestic consumption, the private-run Siam Commercial Bank (SCB) maintains the country’s gross domestic product (GDP) to stay at 2.5 per cent, said Sutapa Amornvivat, executive vice president of the bank. Quoting a report issued by SCB’s Economic Intelligence Centre, Ms Sutapa said Thailand’s export this year is projected by the bank to continue contraction from 2015 due to slower than expectations that global economy would recover. China has import raw materials from Thailand less than before due to changes of its economic restructuring programme and this has affected the kingdom’s export, she said. Household spending continues to stay sluggish because of revenue which has been affected from slowdown in economy, said Ms Sutapa, adding that private consumption is projected to grow only 1.9 per cent. Household consumption is difficult to recover as long as household revenue is affected by declining prices of agricultural products resulted from ongoing severe drought in Thailand. She said the situation has become worsen as workers do not have to work overtime in agricultural, industrial and service sectors. The only hope for Thailand’s economy to improve lies on the government spending on mega transportation projects during the second half this year, said Ms Sutapa. It is hoped that the government spending would grow 11 per cent from earlier projection of 9 per cent. On inflation, SCB forecasts that it would turn positive and would grow 0.4 per cent on the back of global oil prices which would rise at the average of 40 US dollars per barrel while the Thai currency, the baht, is projected to weaken against the greenback at 37 baht per dollar late this year as the US Federal Reserve is expected to hike its rates by 25 basis points, strengthening the dollar. (TNA)