Economy to grow more strongly in H2: JSCCIB
GROSS DOMESTIC product in the latter half of this year is expected to grow more strongly than in the first half, driven by seasonal factors, accelerated state spending, increased foreign purchase orders and more activity in the Eastern Economic Corridor (EEC), said the Joint Standing Committee on Commerce, Industry and Banking.
According to JSCCIB chairman Kalin Sarasin, the committee decided to maintain its estimate for this GDP growth at 3.5-4.0 per cent, with expected export growth of 2.0-3.5 per cent.
The economy performed better than expected in the first quarter, growing by 3.3 per cent on improvements in exports and private consumption, said Kalin, who is also chairman of the Board of Trade and Thai Chamber of Commerce.
Exports continued to sustain satisfactory growth in April, but the rapid appreciation of the baht since late May could affect Thailand’s competitiveness, he said.
Therefore, the JSCCIB urges business operators to hedge more against foreign-exchange risks and is ready to discuss with the Bank of Thailand measures for stabilising the Thai currency, he said.
Despite the continued global economic recovery, the JSCCIB expressed concerns over political developments in the United States and the Federal Reserve’s interest-rate decisions, which will affect the US dollar.
The Federal Open Market Committee will convene on June 13 and 14, and the expectation is for an increase in the Fed’s benchmark interest rate.
Other external factors to watch are elections in the United Kingdom tomorrow and in Germany this September.
In regard to the International Institute for Management Development’s world competitiveness ranking this year, Thailand’s score has increased consistently from 2014, coming in third place among five Asean countries ranked by IMD, a Swiss business school.
Edging up
Moving up one place, Thailand scored higher ranks in economic performance and government efficiency, while sitting in the same places for business efficiency and infrastructure.
In the infrastructure category, Thailand went up by six places in the technology infrastructure and all indicators involving research and development improved, while the country’s innovation capacity climbed nine places from last year’s IMD rating.
Kalin said it was necessary for all parties to boost the private sector’s performance so that Thailand would be upgraded in the world competitiveness ranking consistently and cope with likely changes in and uncertainties of the world economy.
Next year is expected to see improvements in Thailand’s world competitiveness ranking, particularly from the government’s infrastructure development and the EEC that will take shape in the near future.
The JSCCIB also expects the BOT’s “debt clinic”, a centre that pools unsecured soured loans of local and foreign commercial banks with the aim to turn them into performing assets, to be able to solve the rising level of household debts systematically.
