Thai economy to be stimulated by general election, Chinese New Year Festival

BANGKOK, January 24 (TNA) - The Center for Economic and Business Forecasting Center, under Bangkok-based University of the Thai Chamber of Commerce, has projected that a total of about 160 billion baht should be changed hands during the country's ongoing electoral campaigns and Chinese New Year Festival 2019 early next month. The center's director, Thanawat Phonvichai, voiced the projection on Thursday, saying that about 30-50 billion baht is expected to be changed hands during the ongoing electoral campaigns and another 110 billion baht should be changed hands during the upcoming Chinese New Year Festival. Thanawat assessed that the anticipated cashflow of 30-50 billion baht should boost Thailand's gross domestic product (GDP) growth by 0.2-0.3 per cent. Besides, the Thai government's stimulus measure, in which the Ministry of Finance has been authorized to give a 5 per cent-rebate of the value-added tax (VAT) to consumers for their spending during the Chinese New Year Festival early next month, despite a loss of about 7 billion baht in the government's revenue, should generate an increasd cashflow of about 10 billion baht, additionally to a total of about 100 billion baht that is normally changed hands during the annual Chinese New Year Festival in the country. The senior economist told journalists that Thailand's clearly-set general election on March 24, 2019, officially announced on January 23, should also boost the domestic investment, especially those in the government-supported Eastern Economic Corridor (EEC), thanks to more confidence in the Kingdom among international business operators. According to the senior economist, the Thai economy should, thus, grow by 4-4.5 per cent year-on-year in 2019, most likely by 4.2 per cent year-on-year, based on an assumption that there would be no external risk factors challenging the national economic growth. (TNA)