BoT expects 4% GDP growth this year

BANGKOK, Dec 1 (TNA) -- The Bank of Thailand (BoT) projects the Thai economy will grow by 4 per cent this year thanks to exports and economic stimulation. Don Nakornthab, senior director of BoT’s economic and policy department, said the growth rate was possible because consumption was rising in the private sector and the government offered tax incentives for people’s purchase of products and services ahead of the New Year festival. He expected the economic growth to reach 4.6% in the fourth quarter of this year. Mr Don said the Thai economy will be more stable next year as local consumption and private investment will be recovering and benefits from export growth will boost employment and people’s spending. The baht appreciation to the rate of 32.57 baht per US dollar is in accordance with other currencies in the same region. Since early this year, the baht value has risen by 9.93%, showing the second strongest appreciation in the region after Korean won which has appreciated by 11.77%. The baht value is close to Malaysian ringgit which has been 9.74% stronger. Mr Don admitted that baht appreciation was fast and the strongest in the region sometimes and under such a circumstance the BoT would intervene to give enough time for exporters to cope. He said that despite baht appreciation, Thai exports were expanding well. (TNA)