Bangkok Bank Predicts Thai Economy Will Grow By 4-4.5 Percent

[Jai Dee]

Bangkok Bank predicts Thai economy will grow by 4-4.5 percent

Mr. Kosit Panpiemrat(โฆษิต ปั้นเปี่ยมรัษฏ์),the Executive Chairman of the Bangkok Bank Public Company Limited spoke to reporters about the economy trend for this year. He said the economy will grow to 4-4.5 percent, despite the delay of mega projects.

He said Bangkok Bank has already predicted that there will be least investment in the mega-projects for this year. However, he said economy growth will be motivated by the export which will be increased up to 10 percent.

Mr. Kosit also referred to the current political situation, adding that this is the process that will lead to the establishment of the new government and is deemed normal. He said all sides have cooperated to contain any possible violence which may cause negative impact to the country.

Executive Chairman of the Bangkok Bank indicated that the loans of all commercial banks are normal, especially for SME entrepreneurs. He said the banks are encouraging SME investment to create more competition and to maintain the competitiveness in the foreign market.

Source: Thai National News Bureau Public Relations Department - 31 March 2006

[Jai Dee]

World Bank forecasts economic slowdown for Thailand this year

The World Bank has estimated that East Asia Economics may slow in growth to 6.6% this year, after showing growths of 6.8% in 2005.

The World Bank has reported that a key factor in slowing the economic growth of East Asian nations was the rise in oil prices, which is at an all time high in 25 years. The bank affirms that there will be no long-term effects on the regional economy, and voices its approval of the efforts of many Asian nations in reducing state subsidiary of oil prices, and in using strong financial measures to control oil usage. The World Bank is concerned about the spread of avian flu, due to its potential economic effects. The agriculture sector of many nations has had to strengthen their agriculture regulations to combat the disease and maintain trade.

The World Bank expects Thailand's economy to grow by 5% this year, from 4.5% in 2005. Indonesia's economy has dropped to 5.5% from 5.6%, Malaysia has grown from 5.3% to 5.5%, and the Philippines have grown from 5.1% to 5.3%.

Source: Thai National News Bureau Public Relations Department - 31 March 2006