Finance Ministry, NESDB upbeat about economic growth

BANGKOK, Sept 21 – Thailand's Finance Ministry and the National Economic and Social Development Board (NESDB) share in common the view that the Thai economy this year might grow as much as 8 per cent, higher than the 7.5 per cent expected earlier, because the country’s economic fundamentals remain very strong, according to Permanent Secretary for Finance Sathit Limpongpan.

He said exports in August grew considerably although the baht continued strengthening. It showed the stronger baht had not significantly affected the export sector, except for small- and medium-size enterprises and processed agricultural products.

Simultaneously, local consumption continued increasing markedly, showing Thailand’s economic fundamentals are still very strong.

In addition, it was found that foreign capital continued flowing into the capital and secondary markets in large amounts.

The movement demonstrated that the domestic political disturbances had not undermined foreign investor confidence as international reserves remain high at present.

Regarding measures to curb the baht surge, he said the Bank of Thailand had occasionally intervened by purchasing the US dollar to ease the sharp appreciation of the currency. It is the duty of the central bank to take such measures to rein in the baht fluctuation.

He added Finance Minister Korn Chatikavanij was considering ways to encourage local investors to invest more overseas as part of efforts to ease the baht surge.

Meanwhile, it was reported at Government House that Prime Minister Abhisit Vejjajiva expressed concern over impacts of the baht on the country’s tourism sector.

However, the permanent secretary for tourism and sports affirmed the number of foreign investors visiting Thailand this year would reach 14.5-15.5 million as targeted.

Given the tourism growth potential, he said, Thailand is in a position to welcome up 20 million visitors per year. (MCOT online news)