WB:Thai economy will likely grow 5% in 2013

BANGKOK, January 23 (TNA) - The World Bank says that the Thai economy is expected to grow by 5 per cent this year, compared with 4.7 per cent last year, thanks to the country's recovering production in the wake of a flooding crisis in late 2011 and soaring foreign direct investment (FDI), despite lower prices of commodities on the world market. The Washington-based World Bank also predicted that Thai exports should expand by 5.5 per cent this year, compared with 3 per cent last year, and investment by 15 per cent, boosted mainly by new infrastructure development projects, both of which should propel Thailand's gross domestic product (GDP) this year. Kirida Bhaopichitr, the World Bank’s senior economist in Thailand, cautioned, however, that the Thai economy has still faced risk factors, including a slow recovery of the world economy, only at 2.4 per cent, which may affect the country's trade sector, and lower prices of local farm products, which will likely affect farmers’ income. Kirida acknowledged that other risk factors of the Thai economy include a slow disbursement of the 60-billion-baht government budget for water management projects, a daily minimum wage hike to 300 baht nationwide and domestic political uncertainty, assessing that the public debt, which may rise to 50 per cent of the country's GDP, should not, on the other hand, affect the national financial status. The World Bank, meanwhile, recommended that Thailand boost national productivity, per capita income and financial capabilities to cope with possible crises. (TNA)