Thai economy projected to grow by less than 3% this year

BANGKOK, Oct 15 (TNA) -- The private sector projected the Thai economy would expand by less than 3% this year due to export contraction while the government's economic stimulus measures could inject money circulation in the economy. Former energy minister Narongchai Akrasanee told an economic seminar on Oct 13 that the national economy would not grow as much as earlier anticipated and its growth rate should be less than 3% this year because global economic slowdown that eventually effected Thai export growth. He believed that a short-term drive for the domestic economy would come from the government's stimulus measures. He referred to lending through village funds, assistance for small and medium-sized enterprises, and government investments in infrastructure development. Mr Narongchai supported such measures and said that they would improve the economy next year. He wanted Thailand to join the Trans-Pacific Partnership (TPP) trade agreement for its trade benefits. Assoc Prof Somchai Pakapaswiwat of the Faculty of Political Science at Thammasat University predicted that the Thai economy should grow by 2.5-3% this year as Thai export has shrunk by about 3% resulting from the Chinese economic slowdown. He suggested Thailand completely restructure its export and production. He viewed that the government's stimulus measures would not have strong impact but could help stabilise economy and that Thailand could lose its market shares and competitiveness by failing to participate in the TPP. (TNA)