Economy expands 0.3% in Q1
The Thai economy showed the 0.3 per cent economic growth in the first quarter, compared to the same period last year, according to the National Economic and Social Development Board. The growth was achieved despite floods in the fourth quarter in 2011 a
Arkhom Termpittayapaisith,secretary generatal of the think tank, said that compared to the previous quarter, the economy expanded 11 per cent, driven mainly by consumption.
He expected the full recovery from floods in the second quarter.
For this year, the NESDB maintained its economic forecast at 5.5 to 6.5 per cent. This will be driven by consumption, investment and ease of oil prices. Inflation to be at 3.4 to 3.8 per cent.
Among downside risks are financial volatility due to the eurozone crisis and higher wage cost, which will hard hit those in incompetitive sectors like textiles and leather.
Arkhom noted that the impact on euro crisis on Thailand's exports would be slight, as Thailand exports only 10 per cent to the continent and 1-2 per cent to Greece. The global economic growth of 3.4-3.8 per cent would help cushion impacts from lower demand from the EU.
He also urged the central bank not to quickly tighten the monetary policy in light of economic recovery. Consumer spending is still weak after after floods.
