Thai economy, baht on the rise

BANGKOK, January 9 (TNA) - The Thai economy is projected to grow by 4.2 per cent year-on-year on average in 2018, thanks to the expanding world economy and Thai exports, as well as domestic investment and tourism. Narit Sathaphodecha, an executive of the TMB Analytics, made the projection on January 8, noting that the latest forecast of Thailand's economic growth this year is higher than his TMB Bank's previous forecast at 3.8 per cent year-on-year on average. Narit attributed the higher forecast of the national economic growth this year mainly to the strengthening world economy and expanding Thai exports by further about 4.8 per cent year-on-year, worth at least 20.7 billion US dollars monthly, higher than many previous years. Narit pointed out that major importing markets and Thai exports have been both growing, especially to China, which is expected to grow by as high as 8 per cent year-on-year this year boosted mainly by high demand of Thai digital and high technological goods, as well as rubber products, followed by Cambodia, Lao PDR, Myanmar and Vietnam, known as the CLMV group. Besides, the Thai economy this year should be cushioned by expanding domestic investment projects in the both public and private sectors, with investment of the public sector alone expected to expand by 12 per cent year-on-year or to exceed one trillion baht, and by the growing domestic tourism, as 37 million international visitors are expected to visit the country this year, or an about 6.5 per cent year-on-year increase, especially those from China and other economies in East Asia, as well as other member countries of the ASEAN Economic Community (AEC). According to the banking executive, the Thai currency is expected to appreciate to 32.5 baht a US dollar by the end of this year, while the country's key interest rate is foreseen to increase to about 2 per cent in the second half of this year, from 1.5 per cent currently, and improved local banks' performances are also anticipated in 2018, with a drop in their non-performing loans (NPLs). (TNA)