First quarter economic growth will boost more foreign investments

[webfact]

First quarter economic growth will boost more foreign investments



BANGKOK: -- The government is confident that the 3.2% economic growth in this year's first quarter, will strengthen more confidence among foreign investors in the country's economy.

This was voiced yesterday by the government’s economic team leader Somkid Jatusripitak after the National Economic and Social Development Board (NESDB) announced the 3.2% economic growth for the first quarter this year, the highest in the past three years.

NESDB revised up its projection to a range of 3%-3.5% from 2.8-3.8% estimated in February at a press conference yesterday.

Deputy prime minister Somkid Jatusripitak said the GDP growth for the first quarter would initiate a great change in confidence other countries have in Thailand.

This clearly showed that the Thai economy is starting to pick up, he said.

He attributed main drivers of the three year high growth to state spendings, particularly from the Pracharat project, along with state and private investments in the country, as well as the continual expansion of the tourism sector.

Mr Somkid said although the revenues from the agricultural sector would remain low, but state projects launched to assist those at the grassroots would surely help to revive the economy in the end.

He said international community is also showing a higher confidence in Thailand by ranking the country at 21st place for the most interesting country for investments, which in turn would help to increase the number of foreign investments.

He cited announcement by Chinese telecom giant Huawei to set up regional headquarters in Thailand as the show of confidence investors have in the country’s economy.

At the same time Finance Minister Apisak Tantiworawong said he believes that once the private sector saw signs that the economy is improving, they would decide to invest more.

Source: http://englishnews.thaipbs.or.th/content/163537


-- Thai PBS 2016-05-17

[EricBerg]

The growth is built on air: mainly government spending. Thailand's reputation is poor and getting poorer. The number of tourists may grow, but do the revenues grow as well? The Chinese don't spend much. Export was up only 0.9%.

Somkid's words are meant to convince possible foreign investors and to appease domestic ones. The regional Huawei hq coming to the Kingdom is quite meager to substantiate his claim.

[phoenixdoglover]

Any port in a storm.

[bobbymack]

No it won't boost direct foreign investment. The figures are made up and any serious investor who has millions to invest will do a risk assessment. The first point is that the country is a military d............. This is a complete mark against any investor doing a balanced risk assessment and no more needs to be said. It is a complete no no.

[Srikcir]

If I were a foreign investor, I'd wait for the results of referendum on the 2016 draft constitution. It's failure to pass will prolong political conflict and Junta's response might lead to open civil disobediance and business interruption. That's not the environment an investor wants to enter.