FPO expects 3.8% GDP growth this year

BANGKOK, Oct 30 (TNA) -- The Fiscal Policy Office (FPO) predicts the Thai economy will expand by 3.8% this year and next year and does not think flooding will affect it. FPO director-general Suwichaya Rojanawanit who is also the spokesman of the Finance Ministry said the 3.8% economic growth this year was better than earlier expected thanks to Thai exports that were increasing in the second half of this year and more arrivals of foreign tourists. The economy grew 3.2% last year. The director general said private investment, especially in machinery for automotive manufacturing, is significantly picking up in the second half of this year. Consumption in the government and the private sectors is rising. However, investment in the government sector is slowing down due to slow disbursements of additional budgets in fiscal 2017. FPO predicts headline inflation will run at 0.7% this year due to increase in local demand and crude oil prices. The FPO director-general viewed that the impacts of flooding would be manageable and farm products were only slightly affected. The FPO expects government spending and the next general election to drive the national economy next year and it will expand by 3.8% like this year. The export of Thai products and services will gradually increase and headline inflation will run at 1.4% next year due to rising local demand and energy prices. The FPO predicts Thai exports will grow by 3.59% next year, compared with 3.72% this year, due to uncertain policies of the United States, economic slowdowns in the US and Europe and the British exit from the European Union. (END)