Banker expects 3% GDP growth in 2016

BANGKOK, Nov 20 (TNA) -- Predee Daochai, President of Kasikornbank, projected the Thai economy will grow by 3% next year but drought and household debts will remain as risks. In 2016, government investment would be a major driving force for the economy, he said, citing 20 infrastructure projects worth 1.77 trillion baht and a 544-billion-baht investment budget in other projects. The investment budget is 20.7% higher than that in 2014. He also referred to financial aid for small and medium-sized enterprises and growing tourism. Mr Predee also warned that drought and high household debts would limit consumption. He would see how the government would cope with the risk factors. The delayed recovery of global economies and the Chinese economic slowdown would affect Thai export next year. If commodity prices bottom out and start to stabilize, the Thai export should grow slightly by 2% next year, Mr Predee said. He viewed that border trade had high potential and should benefit well from the government’s measures to stimulate investment in special economic zones along the border and industrial clusters, the Kasikornbank president said. (TNA)