Domestic demand boosts Thailand’s GDP

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Southeast Asia’s second-largest economy remained resilient to the economic wobbles in China, the US and the euro zone,  the Thai Chamber of Commerce reported on December 3. Growth was supported by robust domestic demand in the wake of the devastating floods late last year as well as the government’s spending policy.

Thai Chamber of Commerce Chairman Pongsak Assakul predicted that the Thai economy should grow by four to five per cent in 2013, boosted mainly by domestic factors including telecommunication businesses, like 3G mobile phone services, construction projects related to government-supported water management plans and the insurance sector.

For this year, Assakul expects the Thai economy to expand by 5.5 per cent on average. Two factors, however, could impact growth: Export growth could be limited in 2013 due to pending economic problems in major markets of the US, European countries and Japan. Also, the daily minimum wage hike to 300 baht across the country could affect the industry and manufacturing sector.

Thailand’s National Economic and Social Development Board has downgraded its 2012 growth forecasts for exports and imports to 5.5 per cent from a 7.3 per cent projection in August and to 8.8 per cent from 13.5 per cent, respectively.

However, it maintained maintained its 2012 trade surplus estimate of $12.6 billion, but raised its forecast for the full-year current account surplus to $2.8 billion from its $0.3 billion projection previously.

The agency also forecast 2013 export growth of 12.2 per cent and import growth of 12.4 per cent, leaving a trade surplus of $13.7 billion and a current account surplus of $3.8 billion, he said.

Inflationary pressure in Thailand will likely remain low next year as an appreciating baht will help ease price pressures, teh agenca said. It expects inflation in a 2.5-3.5 per cent range in 2013, compared with a forecast 3 per cent rate for this year.

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Reading Time: 1 minute

Southeast Asia’s second-largest economy remained resilient to the economic wobbles in China, the US and the euro zone,  the Thai Chamber of Commerce reported on December 3. Growth was supported by robust domestic demand in the wake of the devastating floods late last year as well as the government’s spending policy.

Reading Time: 1 minute

Southeast Asia’s second-largest economy remained resilient to the economic wobbles in China, the US and the euro zone,  the Thai Chamber of Commerce reported on December 3. Growth was supported by robust domestic demand in the wake of the devastating floods late last year as well as the government’s spending policy.

Thai Chamber of Commerce Chairman Pongsak Assakul predicted that the Thai economy should grow by four to five per cent in 2013, boosted mainly by domestic factors including telecommunication businesses, like 3G mobile phone services, construction projects related to government-supported water management plans and the insurance sector.

For this year, Assakul expects the Thai economy to expand by 5.5 per cent on average. Two factors, however, could impact growth: Export growth could be limited in 2013 due to pending economic problems in major markets of the US, European countries and Japan. Also, the daily minimum wage hike to 300 baht across the country could affect the industry and manufacturing sector.

Thailand’s National Economic and Social Development Board has downgraded its 2012 growth forecasts for exports and imports to 5.5 per cent from a 7.3 per cent projection in August and to 8.8 per cent from 13.5 per cent, respectively.

However, it maintained maintained its 2012 trade surplus estimate of $12.6 billion, but raised its forecast for the full-year current account surplus to $2.8 billion from its $0.3 billion projection previously.

The agency also forecast 2013 export growth of 12.2 per cent and import growth of 12.4 per cent, leaving a trade surplus of $13.7 billion and a current account surplus of $3.8 billion, he said.

Inflationary pressure in Thailand will likely remain low next year as an appreciating baht will help ease price pressures, teh agenca said. It expects inflation in a 2.5-3.5 per cent range in 2013, compared with a forecast 3 per cent rate for this year.

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