World Bank tells Thailand to be cautious on boosting growth

BANGKOK, Dec 10 (TNA) -- The World Bank has projected that Thailand’s gross domestic growth (GDP) at 3.1 per cent for 2017 which expands similar to this year and urged that the country should not “look for ways to artificially keep higher growth.” Sudhir Shetty, chief economist for East Asia and Pacific at the World Bank, said Friday that Thailand’s growth next year is projected by the World Bank to rank at the bottom of the list of East Asian countries, below Malaysia and Indonesia. Mr Shetty cautioned that the Thai government should not accelerate on boosting growth in the country and suggested that stimulation should be adopted in an efficient manner such as public investment in beneficial projects. He said the key risks for the region in 2017 will be sharper than expected. They include a slowdown in advanced economies and China, financial market turbulence and higher domestic leverage. “Policymakers of these economies should not just look for ways to artificially keep higher growth, but also consider the implications for their countries,” he said. “That includes Thailand, which is quite keen on boosting growth beyond current levels.” His remarks were made during the World Bank – Thailand Development Research Institute (TDRI) joint seminar on ‘Economic Prospects for East Asia and Thailand in 2017’. Kirida Bhaopichitr, director of international research and advisory service at TDRI, meanwhile, said that her agency has forecast that Thailand’s growth in 2017 would stay at 3.2 per cent compared to 3 per cent this year due to the country’s exports which are projected to expand between 0 – 1 per cent from slight contraction or steady in 2016, a recovery in domestic consumption and disbursement by the government for investment. However, risk factors are also expected from interest rates which are expected to be raised by US Federal Reserve which would result in capital outflows from Asia, including Thailand, and niche markets, an uncertainty in Europe as some countries may leave the European Union and new economic policies newly elected-president Donald Trump which might affect US-China trade relations and Thailand eventually, said Ms Kirida. She said TDRI has forecast that both exports and domestic consumption would play significant roles for Thailand’s economy in 2017. (TNA)