WB:Thai economy should grow 4% in 2014

BANGKOK, February 11 (TNA) - The World Bank has predicted that the Thai economy should grow by 4 per cent in 2014, boosted by the recovering world economy, and there is unlikely that the Thai economy would face a recession even though there was a political vacuum in the Kingdom. Ulrich Zachau, the World Bank's Director for Thailand, told journalists of the World Bank's projection in Bangkok on Tuesday, explaining that the world economy should grow by 3.2 per cent this year, which would enable Thai exports to expand by 6 per cent year-on-year, compared with last year's 0.4 per cent growth. Zachau said the World Bank is, however, monitoring risk factors faced by Thailand, including prolonged domestic political demonstrations which have delayed the formation of the new Thai government. The World Bank's director pointed out if Thailand's caretaker government stayed long, investment would be suspended and the national economic growth rate would be lower than expected. The World Bank's director acknowledged that it appears to be difficult to predict political factors in Thailand and the World Bank would, thus, keep following up Thailand 's updated political situation and would, probably, revise its forecast on the Thai economic growth rate later. However, the World Bank's director noted that Thailand appears to have a very small chance to suffer an economic recession despite its political vacuum. Kirida Bhaopichitr, the World Bank's senior economist for Thailand, reported, meanwhile, that the Thai economy grew by 3 per cent on average in 2013 and even only 1.3 per cent year-on-year in the fourth quarter of last year. According to the World Bank's senior economist, Thailand's exports, household consumption, investment and the government's spending have slowed down due to domestic political risk factors. The World Bank's senior economist stated although ongoing domestic political problems have not affected the macroeconomy, they have caused the Thai tourism to decelerate; so, domestic Tourism is likely to expand by only 10 per cent on average in 2014, compared with 20 per cent on average in 2013.(TNA)