Posted on 04 Aug 2014
Thai economic growth is expected to reach 5
per cent next year after domestic and global recovery starts gathering steam,
Finance Ministry permanent secretary Rungson Sriworasat said yesterday.
Meanwhile, the Fiscal Policy Office has
revised down the country's 2014 economic-growth forecast to 2 per cent from the
2.6 per cent estimated in March, following the economic slowdown experienced in
the first half of the year.
Rungson cited economic recovery due to the
revival of domestic investment projects and economic stimulus measures, as well
economic upturns in global markets, for next year's projected Thai expansion.
"If projects come with consistent
implementation as targeted, spending will follow. I believe this could boost
next year's growth to 5 per cent. The global economy is gradually improving,
and that could support Thai exports," he added.
Krisada Chinavicharana, director-general of
the Fiscal Policy Office, said this year could now see 2-per-cent Thai economic
growth, within an expected range of 1.5-2.5 per cent.
Political unrest is cited as the main
reason for first-quarter contraction of 0.6 per cent, while the prolonged
political situation eroded the confidence of consumers and businesses in the
first half of the year.
However, the latter half is expected to see
improvement in both consumer and investor confidence, he added.
Meanwhile, Thailand's 2014 manufacturing
gross domestic product has been revised down to 1-2 per cent from the previous
estimate of 2-3 per cent, given rising oil prices, the baht's appreciation and
global economic uncertainty, said Somchai Harnhirun, director-general of the
Office of Industrial Economics.
The Manufacturing Production Index (MPI)
has also been cut, to 1 per cent or less, from 1.5-2 per cent.
"People's confidence has improved, but
the economy has not yet made a definite recovery. We need to monitor the
economy in the latter half," he said.
The 2014 fiscal budget will be pushed
during the current quarter, while the fourth quarter is expected to see a new
government being formed under the junta's provisional charter, he added. The
National Council for Peace and Order's economic policy, which is focused more
on structure than on stimulus, is good for the long term, given its elimination
of problems and obstacles in laws, manufacturing and business processes, said
Somchai.
In the first six months of the year,
imports of raw materials shrank 19.8 per cent and imports of capital goods
contracted 12.9 per cent, reflecting unsatisfactory manufacturing, he said.
