BOT chief estimates GDP growth at 3.5%

BANGKOK, 12 February 2016 (NNT) – Governor of the Bank of Thailand (BOT) Veerathai Santiprabhob projects that the Thai economy will be able to expand 3.5 percent this year despite lukewarm exports.

According to Mr Veerathai, the Thai economy will recover gradually this year but in an uneven manner, given the lack of income growth both in the agricultural and non-agricultural sectors as well as high household debt. Nonetheless, he expressed belief that the annual economic growth will increase from 2.8 percent last year to 3.5 percent.

Supporting factors for this year’s growth include private consumption, public investment, tourism and oil price decline, which helps reduce business operating costs and people’s living expenses.

The central bank chief expects no significant improvement in exports as the global economy remains uncertain. Capital markets worldwide are likely to undergo fluctuations. However, he said the impact on the domestic market will be limited as the country maintains a current account surplus of 9 percent of the GDP or about 34 billion US dollars, along with high foreign-exchange reserves and low private external debt.


-- NNT 2016-02-12

Oh!

What about the debt overhang? What about the lack of credit of hundreds of thousands that bought cars for the tax check and then stopped paying making the repayments? What about the crisis in the rest of the world….China, Thailand's biggest trading partner? I suspect that like all other forecasts made by the shower in charge these forecasts will be driven down month after month by dismal results.

What about the debt overhang? What about the lack of credit of hundreds of thousands that bought cars for the tax check and then stopped paying making the repayments? What about the crisis in the rest of the world.China, Thailand's biggest trading partner? I suspect that like all other forecasts made by the shower in charge these forecasts will be driven down month after month by dismal results.

Thai banks did not issue CoCo bonds, and so would have sufficient capital to meet these NPLs... because they did not extended themselves when granting loans.

Does he know the song "Dreamer" from Supertramp?

Seems I read the same pipe dream last week. I guess if you say something often enough you get to believe it.

given the lack of income growth both in the agricultural and non-agricultural sectors as well as high household debt.

Nonetheless, the annual economic growth will increase from 2.8 percent last year to 3.5 percent.

Nonetheless, there is nothing to support a 3.5% growth rate.

Even Somkid is expecting only 3%.