Somkid says WB’s 2.5 GDP growth forecast for Thailand a good news but warns not to be overconfident



BANGKOK: -- Deputy Prime Minister Somkid Jatusriphitak yesterday welcomed the World Bank’s latest adjustment of Thailand’s GDP to 2.5 which is higher than previous projections by 2% saying that this was a good news.

However the deputy prime minister in charge of economic affairs cautioned that the country should not stay overconfident.

“We must not be rash or become overconfident as this is the first time that Thailand’s GDP has risen which contrasts with the overall global economic situation which has suffered a contraction.”

He said what will remain important for the country is the laying down of vital groundwork for the future which must focus on reforms that will provide Thai citizens with increased earnings.

He also said one bright outlook for the government is the Excise Department’s marked increase in tax collection for the past eight month period which amounted to 349.679 billion baht, exceeding previous year’s figures by 54.366 billion Baht.

This is a direct reflection consumers increased spending on certain types of products in particular necessity goods and on the other extreme, luxury items.

New automobile bookings in particular support this fact.

A total of 800,000 new car bookings have been received locally while another 2.2 million have been received from foreign customers.

Source: http://englishnews.thaipbs.or.th/somkid-says-wbs-2-5-gdp-growth-forecast-thailand-good-news-warns-not-overconfident/


-- Thai PBS 2016-06-10

"However the deputy prime minister in charge of economic affairs cautioned that the country should not stay overconfident."

From another article right below this one:

"Consumer confidence index (CCI) for May 2016 plunged to its lowest level in a period of eight months, the University of the Thai Chamber of Commerce (UTCC) revealed yesterday."

Does this sound like the country is staying overconfident?

Do any of these people think or research before they make such ridiculous statements?

A bit of common sense from the DPM, what happened , It is refreshing to see some logic being displayed and caution within the message , however I thought it was going to be 3.5 % a few weeks back , generally the goobly gook that emits from Thailand's Junta unelected Ministers , like previous administrations, tend to talk up the particular topic, especially the economy , fooling nobody, except themselves...................................

Yes sir Mr. Somkid we believe your numbers given for new car bookings. I will now go to the December page on my calendar and stroke out the 3% figure of GDP given a couple weeks ago and insert 2.5% that you are touting. I hope this is the last downgrade as I am running out of room on the page.

Deputy Prime Minister Somkid Jatusriphitak welcomed the World Bank’s latest adjustment of Thailand’s GDP to 2.5(%) which is higher than previous projections by 2% saying that this was good news.

True, the World Bank raised its projection to 2.5% from 2% but this is not good news for Somkid, for the Junta or Thailand!

In April 2016 Somkid trimmed the growth projection to 3.3% from 3.7% based on a forecast by The Fiscal Policy Office of the Finance Ministry. BOT in the same month revised the country's economic growth projection this year down from 3.5 to 3.1%.

In May 2016 the Thai Chamber of Commerce and Board of Trade of Thailand have revised the economic growth forecast from 3.5% to 3%, due to the global economic slowdown. Also in May 2016 the University of the Thai Chamber of Commerce projected that the Thai economy will expand 3% this year.

Yesterday the IMF concluded its evaluation of the Thai economy in 2016 and predicted that the growth rate will reach 3%.

The growth rate for 2015 was 2.5% (World Bank) to 2.8% (Somkid). And now Somkid cautions that the country should not stay overconfident at 2.5% which is less than the growth rate for 2015?

The economy is slowing further than expected by the Junta. Rather than not being overconfident Somkid should be panicked.