Economy tipped to grow by up to 4%
THE NATIONAL Economic and Social Development Board (NESDB) sees economic growth gathering steam to 3-4 per cent this year, from 3.2 per cent last year.
However, the Bank of Thailand should not raise the policy interest rate yet as the economic recovery is still nascent and heavily reliant on fiscal policy, while the public sector would bear a bigger debt burden, Porametee Vimolsiri, secretary-general of the NESDB, said Monday.
The policy rate should be kept steady for about a year until the economy has stabilised.
Although the US central bank has signalled its intention for continued rises in its benchmark interest rate, Thailand may not follow the lead of the US economy.
The NESDB reported that gross domestic product (GDP) expanded at an annual pace of 3 per cent in the fourth quarter of last year, compared with 3.2 per cent in the third quarter, resulting in GDP for the full year gaining 3.2 per cent to $406.9 billion (Bt14.36 trillion).
GDP per capita advanced to $6,032, from $5,937 in 2015.
