TMB revises Thailand’s growth to 3.5%

BANGKOK, Sept 9 (TNA) -- TMB Bank has revised its forecast on Thailand’s economic growth this year to 3.5 per cent from 3.3 per cent projected earlier on several positive factors, said Naris Sathapholdeja, head of TMB Analysis centre. Major factors leading to the revision are attributed to rising national exports to 5.8 per cent, up from 2 per cent forecast earlier, which has helped pushed production and private investment to turnaround to 1.6 per cent after they had turned sluggish more than three years, said Mr Naris. Public investment at the same time expanded 7.2 per cent, he said. However, investment by the government is still lower than an earlier projection, especially budget amounting 190 billion baht for the middle of 2017 fiscal year, started last October 1, which is expected to be lower than earlier target. On the outlook of Thailand’s economy in 2018, the TMB Bank expects that it would grow 3.8 per cent and only major enterprises would enjoy the projected growth, said Mr Naris. Exports in 2018 are projected to grow 4.8 per cent, in line with the world’s economic recovery, he said. Private investment is expected to recover and expand to 3.8 per cent, especially in vehicles, electronics and petrochemical industries. Private consumption next year is projected to remain sluggish at 3.2 per cent, almost equal to this year, because of low employment in small-and medium enterprises, he said. Mr Naris said his bank has forecast that the Thai baht would strengthen to 31 baht against a dollar in 2018, strongest in the past three years, due to continued capital inflows and an uncertain international political situations. (TNA)