Safety nets of Thai economy remain strong

BANGKOK, August 7 (TNA) - There are strong safety nets to protect the Thai economy towards a continual recovery so far. Dr. Pipat Luengnaruemitchai, Assistant Managing Director of Phatra Securities Public Co., Ltd., under the Kiatnakin Phatra Financial Group, acknowledged on August 6 that the safety nets, namely a high level of foreign exchange reserves, a surplus of the current account, a low level of inflation at about 1.2 per cent and a stable key interest rate of the Bank of Thailand (BOT) at about 1.50 per cent, have protected and supported the Thai economy towards its continual recovery so far. Dr. Pipat told journalists that a growing trend of the Thai economy has been, thus, maintained, boosted mainly by the country's expanding exports, tourism, consumption and investment. The senior analyst forecast that the Thai economy should grow by 4.2 per cent year-on-year and 3.8 per cent year-on-year on average in 2018 and 2019, saying that the country's export and tourism growth should slow down next year amid a high level of household debts and vulnerable farm produce prices. The senior analyst viewed, however, that limited floods in some Thai areas should not affect the national economy growth this year unless the inundations expanded to other areas widely as serious as those in late 2011. The senior analyst cautioned that there are risk factors against the recovering Thai economy that need to be watched out, including impacts from the rising trend of the US key interest rate and vulnerable Chinese and emerging neighboring economies in the region, as well as an uncertainty of Washington's trade policy and a declining profit trend of listed companies on the Stock Exchange of Thailand (SET). The senior analyst assessed, meanwhile, that the SET index should stand at about 1,670-1,820 points at the end of 2018. (TNA)