FTI Chairman admits small chance for GDP to grow by 3% this year

[webfact]

FTI Chairman admits small chance for GDP to grow by 3% this year

 

   

BANGKOK, 14 June 2019 (NNT) - The Chairman of the Federation of Thai Industries admitted that there is a small chance for GDP to grow by three percent this year due to both internal and external factors.

 

FTI Chairman Suphan Mongkholsuthee admitted that there is a small chance for Thailand’s GDP will grow by three percent this year due to foreign risk factors and delayed budget disbursements and government investments although the government has measures to inject money and stimulate spending in the country such as a shopping tax break measure but they were not much effective.

 

He said how the assessment of the government’s work would affect the economy is still an issue to follow up on. Currently, the persons who will become ministers are not clearly seen but he wanted them to be earnest and have expertise in their duties.

 

If they are not experienced, they should have a team to fully help with the work to yield results within six months with transparency and hear suggestions of the private sector to steer the economy together.

 

As for the rumor that Mr. Sonthirat Sonthijirawong will be appointed Minister of Industry, he personally thinks Mr. Sonthirat is familiar with and used to work with the private sector before so they should be able to continue working together well but the FTI is ready to work with any person who will become the Industry Minister.

 

 

-- © Copyright nnt 2019-06-14

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[rkidlad]

18 minutes ago, webfact said:

Currently, the persons who will become ministers are not clearly seen but he wanted them to be earnest and have expertise in their duties.

Of course they will. They'll be chosen based on their qualifications and experience. Not on who they're related to or who they know. 

[Cadbury]

Where is Somkid the junta's financial wizard? He seems to be wisely distancing himself from the foreboding economic doom. 

[Misterwhisper]

OK, so GDP will stay well below 3% growth this year.

The automotive industry anticipates a year-on-year production yield drop of 6.11%.

Export value is predicted to slump an astonishing 66 BILLION baht this year.

A variety of other industry sectors likewise reports substantial turnover and therefore profit declines.

State-owned corporations like Thai Airways and the Tobacco Authority of Thailand consistently post either huge losses or severe sales decreases.

There is still no operational government in place, and whatever future government is in the making is bound to stand on very shaky feet.

Meanwhile consumer prices rise and rise while wages remain stagnant.

 

And yet the exchange rate of the Thai baht remains sky high, the Bank of Thailand insisting it is not manipulating the currency.

 

I just don't get it.

[Srikcir]

1 hour ago, Misterwhisper said:

And yet the exchange rate of the Thai baht remains sky high, the Bank of Thailand insisting it is not manipulating the currency.

By U.S. standards (lower exchange rate to dump products into a foreign nation or drive out competition), it's not being manipulated.

But it should - legally.

Raise interest rates that will devalue the baht which will ease current foreign debt payments (China won't appreciate that however) and restore (not increase) level of exports to existing customers. However, if the Thai government wants to borrow more foreign debt (ie., for infrastructure projects) it would want the baht as high as possible.

 

[Srikcir]

4 hours ago, webfact said:

If they are not experienced, they should have a team to fully help with the work to yield results within six months

You mean like PM Prayut's former DPM Mr. Somkid for Economic Affairs for the last five years and PM Thaksin's former Minister of Finance and Commerce?

If Somkid (or his 'kind') remains with PM Prayut, might not expect any better.

It's the PM that is responsible for setting the economic strategy for the nation, regardless of the experience or advice of any economic advisor. With Prayut continuing as PM, it will matter little whom he appoints for the Cabinet regarding economic policies.