Thai private sector maintains growth estimate for 2016

[webfact]

Private sector maintains growth estimate for 2016

  

BANGKOK, 3 August 2016 (NNT) - The private sector has expressed confidence that the Thai economy this year will expand by 3% - 3.5% after the export sector showed signs of recovery. 

A meeting between the Joint Standing Committee on Commerce, Industry, and Banking on Tuesday maintained the economic growth estimate of 3% - 3.5% and the export growth estimate of -2% - 0% mainly due to better economic conditions in June. Exports in June increased from the previous month and industrial goods expanded for the first time in three months. The improving drought led to increasing income of farmers for three months in a row. 

The meeting therefore predicted that the Thai economy would continuously recover in the second half this year but warned of the effects from Brexit and the Chinese economic slowdown. 

Chairman of the Federation of the Thai Industry Chen Namchaisiri said he believed that the charter referendum would have no impact on the Thai economy. The private sector’s confidence would not be affected if the government adhered to its road map and there was a general election in 2017, he said.

 

-- nnt 2016-08-03

[Srikcir]

6 hours ago, webfact said:

after the export sector showed signs of recovery. 

While the export sector is improving, it is still contracting. Until it sees positive growth, I wouldn't expect to see economic growth for 2016 to exceed 3%. BOT just reported that the secnd half of 2016 is likely to improve only slightly. Hardly an endorsement of 3%-3.5% annual growth for 2016.