Thai economy growing amid risk factors

BANGKOK, January 19 (TNA) - The Thai economy has been expanding but risk factors remain, both internal and external ones. Delivering his speech at a seminar entitled "Economic and Business Outlook in 2016: Hot-button issues for Directors", held in Bangkok on January 18, Supavut Saichue, President of Phatra Securities Public Co., Ltd., projected that the Thai economy could grow by 3.2 per cent this year under conditions that there are no domestic political problem and certain external factors. Supavut told participants in the seminar that he was personally worried over risk factors to be faced by the Thai economy in the second quarter of this year, when the country's new Constitution draft would have to be approved by a public referendum. Besides, drought and a drop in domestic tourism-related revenues in the annual low season could drag on Thailand's economic expansion this year. Supavut pointed out that Thailand's new Constitution draft needs to be approved by the majority of voters to pave the way for the country's new general election in 2017; otherwise, Thailand’s gross domestic product (GDP) could grow less than 3.2 per cent this year. For external risk factors, Supavut assessed that global oil prices should further fall to 25 US dollars per barrel, which would consequently lower prices of consumer products, while China’s economic slowdown should force China to enter a tight money situation and a further depreciation of its currency, which would eventually affect the world economy. The senior analyst also foresaw a new key interest rate hike by the US Federal Reserve (FED) later this year, which would make the greenback become some 5 per cent stronger than all other currencies. (TNA)