'Combination of factors could fuel GDP growth'
The Bank of Thailand says private investment, efficient disbursement of the state budget and the recovery of major global economies could result in the Thai economy growing faster than previously expected this year, while exports face production-technolog
BOT spokeswoman Roong Malikamas said it was possible for gross domestic product to exceed the current 1.5-per-cent growth estimate. The central bank’s Monetary Policy Committee (MPC) believes the above three factors could give the economy an extra boost.
Private investment is coming in faster than expected on improved confidence that state policies will be carried out quickly and efficiently while the global economy also improves.
The MPC’s official GDP growth forecast is 1.5 per cent for 2014, while the military’s ruling National Council for Peace and Order wants to see a higher growth figure of more than 2 per cent.
Roong conceded that although the global economy is improving, Thailand might not benefit much, partly because of its technology limitations. Even so, it is possible that GDP growth could reach 2-2.5 per cent this year, stimulated by investment. She explained that once public investment gets back on track, private investment could follow rapidly.
"The private sector’s concerns have eased, particularly over the political situation. If the public sector has a certain investment plan, [private] investment could return," she said.
For now, though, the central bank is sticking with its estimate for this year’s economic growth at 1.5 per cent, with growth of 3.4 per cent in the current latter half.
Roong said the baht had moved in a narrow range in the past two or three weeks as there were no new factors.
