ADB forecasts Thailand’s GDP growth at 5.5 pct in 2012

BANGKOK, April 11 (TNA) - The Asian Development Bank (ADB) has predicted that the Thai economy should grow by 5.5 per cent this year, boosted by the country's spending on post-flood rehabilitation and long-term flood prevention and water management projects. A Thailand-based ADB economist, Laksamon Atthapit, told journalists Wednesday of the Manila-based ADB's updated projection of the Thai economic growth, at around 5.5 per cent, in 2012 and 2013, saying that the ADB’s latest forecast rose from its earlier prediction that the Thai economy should expand by 4.5 per cent this year. According to the ADB economist, other supportive factors which will also boost the Thai economy include a new daily minimum wage rise to 300 baht in first seven provinces, including Bangkok, from April 1, 2012, and a salary increase for government officials. Besides, the ADB economist indicated, government-sponsored incentives for first-home and first-car buyers have boosted consumption in the local private sector. The ADB has also predicted that Thailand's inflation should be around 3.4 per cent this year and 3.3 per cent next year; while remaining risk factors of the Thai economy include impacts from European economic woes which could affect Thai exports, fluctuating global oil prices and possibilities of repeated flooding and drought in the country. (TNA)