World Bank: Thailand’s GDP growth 4.5%

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The full recovery of the industrial sector after the 2011 floods will prompt the Thai economy to grow by 4.5 per cent this year, the World Bank on August 15 confirmed an earlier forecast.

Furthermore, the impact of the euro zone debt crisis had so far “minimal” effects on Thailand’s exports, Kirida Paopichit, senior economist at the World Bank, said, even if exports in the first half of the year were below expectation.

Deputy Commerce Minister Phum Sarapol told the Bangkok Post  in response to the news that the Ministry of Commerce will not revise its 2012 export growth projection of 15 per cent. However, the World Bank forecasts that Thai exports will expand by only 10.4 per cent this year.

The bank said that foreign direct investment would continue to flow into Thailand because it has upheld its status as an attractive investment destination with strong economic fundamentals.

For 2013, Thai GDP growth should reach 5 per cent, Paopichit said.

Analysts generally fear that Thailand’s GDP could experience slower growth over the next several years if the pressure from the euro zone continues. The country will also have to make better preparations for the upcoming ASEAN Economic Community by 2015, especially by opening the service sector, developing human resources including their English language capabilities and easing export regulations for small and medium companies, together with amending regulations in the foreign investment law.

Thai companies are advised to adapt their marketing strategies in order to focus on new potential markets and increase productivity and competitiveness, as demand from traditional markets would continue to shrink, the analysts said at seminar on global economic developments last month in Bangkok.

 

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Reading Time: 1 minute

The full recovery of the industrial sector after the 2011 floods will prompt the Thai economy to grow by 4.5 per cent this year, the World Bank on August 15 confirmed an earlier forecast.

Reading Time: 1 minute

The full recovery of the industrial sector after the 2011 floods will prompt the Thai economy to grow by 4.5 per cent this year, the World Bank on August 15 confirmed an earlier forecast.

Furthermore, the impact of the euro zone debt crisis had so far “minimal” effects on Thailand’s exports, Kirida Paopichit, senior economist at the World Bank, said, even if exports in the first half of the year were below expectation.

Deputy Commerce Minister Phum Sarapol told the Bangkok Post  in response to the news that the Ministry of Commerce will not revise its 2012 export growth projection of 15 per cent. However, the World Bank forecasts that Thai exports will expand by only 10.4 per cent this year.

The bank said that foreign direct investment would continue to flow into Thailand because it has upheld its status as an attractive investment destination with strong economic fundamentals.

For 2013, Thai GDP growth should reach 5 per cent, Paopichit said.

Analysts generally fear that Thailand’s GDP could experience slower growth over the next several years if the pressure from the euro zone continues. The country will also have to make better preparations for the upcoming ASEAN Economic Community by 2015, especially by opening the service sector, developing human resources including their English language capabilities and easing export regulations for small and medium companies, together with amending regulations in the foreign investment law.

Thai companies are advised to adapt their marketing strategies in order to focus on new potential markets and increase productivity and competitiveness, as demand from traditional markets would continue to shrink, the analysts said at seminar on global economic developments last month in Bangkok.

 

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