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Bangkok Bank confident Thai economy will grow by 5% this year

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Bangkok Bank

Bangkok Bank building. Photo: Mengyeyue.

BANGKOK, 31 January 2011 (NNT) – Bangkok Bank is certain the Thai economy will expand by as much as 5% this year although the fluctuation of the world economy could still weigh down the forecast growth.

Executive Vice President of Bangkok Bank Public Company Limited Dr Kobsak Pootrakool said Thailand’s economic growth should continue if political tensions do no escalate. The growth rate is expected to reach as high as 5% this year after it had contracted to 1.8% in 2011.

However, Dr Kobsak warned of possible impact from the global economy as fluctuations are still imminent. He said private spending on the restoration of businesses, which were damaged by last year’s flood, will be a major drive to the Thai economy. He explained that both private and public loans given to the flood-affected entrepreneurs will encourage them to spend more, which will eventually lead to higher consumption in the country and prompt the economy to grow in the first half of this year.

Meanwhile, the Thai economy, he projected, will rely on foreign and government investments in the latter half of the year, especially investments in water management projects, basic infrastructure and soft loan programs.

Besides the financial crisis in Europe, Thailand could also be hampered by the currency exchange volatility. Dr Kobsak thus advised business owners to take precautions when it comes to financial planning.

On the other hand, the ASEAN Economic Community could help boost the Thai economy in the next 3-4 years as it is expected to attract a higher number of investors to the ASEAN region.

National News Bureau of Thailand

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