TDRI: Public investment and tourism to help push for 3% growth rate this year

BANGKOK, 11 February 2016 (NNT) - The Thailand Development Research Institute (TDRI) has predicted that the Thai economy has a chance to grow by 3% due to the government’s expedition of investment budget disbursement and continuously expanding tourism.

TDRI Director Kirida Phaophichit said on Wednesday that the Thai economy would likely expand at a rate similar to last year or at 3.5% after the government increased its investment budget to 20% and disbursement started to rise. These would also result in higher confidence of the private sector, the director added.

As for the government’s policy on industrial clusters, the director said it would help attract foreign investment more. The tourism sector would also increase continuously, judging from the number of Chinese tourists which had been increasing for many years in a row, said the director.

The director added that risk factors for the Thai economy this year included an economic slowdown of China—Thailand’s major trade partner—as well as drought which would affect important agricultural products, especially rice. Drought would likely affect farmers’ purchasing power and lead to higher household debt, she said.


-- NNT 2016-02-11

No Chance... America is struggling too.

Thailand is moving backwards, take your pick of 50 or more reasons why.

Deputy Prime Minister for Economic Affairs Somkid Chatusripitak predicted that the Thai economy will expand by 2.8% - 3% in 2016. He has been fairly pragmatic in his projections, albeit he expects exports to revers their contraction. So TDRI's 3% projection is at best the upper limit of anticpated growth.

The consequence of ONLY a 3% growth or less is that some of the other ASEAN nations will be experiencing 4-6% growth rates in 2016. This will draw both domestic and foreign capital further away from Thailand. It will further put pressure for higher interest rates on issuance of treasury bonds that the junta seems so enamored with to finance its spur of the moment off-budget programs.

Thailand needs a 4-5% growth rate in 2016 for a sustainable economy.

Is not going to happen Wishful thinking