BoT projects Thailand to sustain 3.5% growth in 2016

BANGKOK, Jan 15 (TNA) -- Thailand’s economy is projected to sustain 3.5 per cent growth in 2016 while inflation is to turnaround to positive in the second half due to continued declining in oil prices, said Veerathai Santiprabhob, governor of Bank of Thailand (BoT). Mr Veerathai said Thailand’s economy this year is expected to sustain growth from last year’s 2.8 per cent growth on the back of global economy which is projected to recover while the country’s inflation would suffer contraction during the first half but it would turnaround to positive due to continued dwindling oil prices. Volatility of global economy would remain significant factor for world’s money and capital markets but would not affect Thailand’s economy much because the kingdom depends on foreign currencies lesser than several other countries, he said. Currently, the government and the central bank hold about 7-8 per cent of total accumulative bonds which is less than several niche economies, said Mr Veerathai. Most importantly, Thailand enjoys current account surplus of 8 per cent of gross domestic product and has international reserves as high as three times of short-term foreign debts. He said the majority of the private sector depends on domestic loans, therefore, the country’s economy would not affect much whenever a volatility in money and capital markets occur in the global or regional markets. (TNA)