Thai Economy Projected To Grow 8% Despite Political Unrest

Thai economy projected to grow 8% despite political unrest

BANGKOK (TNA) -- The Thai economy is expected to grow 8 per cent this year although it has been affected by the political unrest, according to a top fund manager.

Win Udomratchatavanich, senior executive vice president of Asset Plus Asset Management Co, said the economy in the 2nd quarter of this year should expand at a more accelerating rate than initially projected.

The expected growth rate of 8 per cent is close to what the National Economic and Social Development Board forecast earlier.

He projected the economy would accelerate during the rest of this year since the political disorder has reduced, tourism showed clear signs of recovery, and private consumption and exports are likely to continue growing in tandem with the global economic expansion.

With the economy set to pick up, more foreign capital has been flowing into the stock market and the secondary market in the past few weeks. It showed foreign investors still had confidence and are keen on returning to invest in Thailand.

On investment in the secondary market, he said, short-term debt instruments still drew attention from investors.

He predicted the Bank of Thailand would continue raising the policy interest rate at the Monetary Policy Committee’s meetings in August and October.

The policy rate is likely to increase to 2 per cent at year-end from 1.5 per cent currently, he added. (MCOT online news)

-- TNA 2010-08-04