FRIDAY, March 29, 2024
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Growth should outstrip BOT forecast, says Apisak

Growth should outstrip BOT forecast, says Apisak

FINANCE MINISTER Apisak Tantivorawong yesterday expressed optimism that the economy would outpace the Bank of Thailand's expectations thanks to strong tailwinds from the government's mega investment in infrastructure and the reforms that aim to lay a fi

“It will be more than the central bank’s predictions because of the expected increase in government spending on infrastructure projects, and the economic reform efforts should be able to help with the expansion of the economy next year,” he told the press at an economic seminar arranged by the Stock Exchange of Thailand.
The central bank last week took a dimmer view of growth prospects, cutting its forecasts for increases in gross domestic product for this year from 3.0 per cent to 2.7 per cent and next year from 4.1 per cent to 3.7 per cent because of the slower-than-expected global economic recovery. 
It cited further weakness in China’s and other Asian economies, the impact of the midyear drought and the steeper-than-expected slide in global oil prices. 
The Thai economy is now facing various risk factors such as the expected lift-off of US interest rates, which will affect capital flows, and the slowdown in China. However, China’s GDP will still be able to expand by about 7 per cent annually for five to 10 years.
“The 7-per-cent expansion in China will contribute to the expansion of the Thai economy, but Thailand’s economic expansion should not only depend on exports. 
“The current government’s policy is to support the domestic economy together with exports,” Apisak said.

Growth should outstrip BOT forecast, says Apisak

The new Economic Cabinet has already introduced stimulus measures to support low-income earners and small and medium enterprises.
The government will continue to accelerate its spending on infrastructure development.
It is trying to attract more foreign direct investment here via both tax and non-tax incentives and the effort to improve the ease of doing business. This will amplify the country’s economic potential. 
“What the government will do is integration. All government agencies will need to get in touch with investors and improve the process so that it can be more convenient by amending regulations. 
“We hope that the World Bank will continue to raise our ranking next year from the reform efforts,” he said. 
Thailand’s ranking in the World Bank’s “Doing Business” report has improved from No 28 out of 189 countries in 2014 to No 26 this year. 
Apisak also played down speculation that his ministry plans to dump its PTT, Thai Airways and TMB Bank stakes because of disappointing profits and the time it’s taking to set up an infrastructure fund.
However, he refused to comment on the fund’s limit and targeted rate of return. 
 
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