Siam Commercial Bank projects Thai GDP to grow 3.4% this year

BANGKOK, July 17 (TNA) -- The research centre of Siam Commercial Bank (SCB) prejeccts that the Thai economy will expand 3.4% this year, based on the export growth of 3.5%. However, it is concerned about slow increases in private investment and consumption. Pacharapot Nantramas, macroeconomics director of SCB’s Economic Intelligence Centre, said the economic growth projection was revised upwards from 3.3% due to significant export recovery. The centre revised its export growth forecast up from 1.5% to 3.5% this year due to the improving economies of important trading partners like the United States, Europe, China, Cambodia, Laos, Myanmar and Vietnam. He sees bright prospect for Thailand’s electronic parts, food and beverages which account for 30% of overall Thai exports. Mr Pacharapot said that however export growth potential was capped as private investment edged up by only 1.4%. He is also worried about the domestic purchasing power that grows by only 3.1% and farmers’ income that is likely to drop in the second half of the year. The centre expects government’s infrastructure projects and 100-billion-baht economic stimulation will support the economy in the second half. Baht will be stronger against the currencies of some trading partners in the rest of the year, Mr Pacharapot said. Baht appreciation will result from the fact that the United States’ Federal Reserve delays its interest rate hike. He predicts the baht value will range between 35.00-35.50 baht against a US dollar, stronger than his center’s previous forecast of 36 baht per dollar. Some Thai exports would have price disadvantages, including semiconductor products, phone parts, natural rubber and rice, Mr Pacharapot said. (TNA)