ADB:Thai economy is likely to grow 3.5% in 2017

BANGKOK, September 28 (TNA) - The Manila-based Asian Development Bank (ADB) has forecast that Thailand's economic growth in 2017 should stand at about 3.5 per cent year-on-year, cushioned by the expanding domestic investment and consumption. ADB Senior Economist for Thailand, Luxmon Attapich, told journalists of her bank's updated projection on September 27, acknowledging that Thailand's economic growth is on a rebounding track. Luxmon pointed out that the recovering Thai economy is supported by the rebounding global trade with an anticipated more Thai imports next year but a likely drop of the country's trade and current account surplus. Luxmon said that the Thai government's new investment projects were set to start early next year, stimulating the local private sector's consumption conseqently. Besides, the Thai economy next year should be spurred by increased confidence in the national economy by local consumers and the private sector, especially after the endorsement of the country's new Constitution draft by the majority of voters last month. The ADB senior economist cautioned, however, that risk factors both internally and externally remain in the Thai economy in 2017, including a probably delay in the Thai government's investment in its new mega-infrastructure projects and an uncertainty in the domestic politics and local farmers' income caused by impacts from changing weather conditions, as well as impacts from the vulnerable economic recovery of major trading partners, the result of the new US presidential election on November 8, 2016, the financial policy of the US Federal Reserve (FED) and Britain's decision in mid-2016 to leave the European Union (EU), wellknown as Brexit. Meanwhile, ADB viewed that there have been no necessary factors for the Bank of Thailand (BOT) to raise its key interest rate until the end of 2017, suggesting that its current rate should support the national economic recovery. (TNA)