BOT raises estimated growth for Thai economy to 6% in 2012

BANGKOK, May 11 (TNA) - The Bank of Thailand (BOT) has raised its estimate for the national economic growth this year to 6 per cent, thanks to quick recovery in the wake of the country's flooding crisis late last year. BOT Assistant Governor for Monetary Policies Paibul Kittisrikangwan acknowledged on Friday that the Thai economy has been recovering faster than expected and local business operators are expected to fully restore their businesses before the end of the second quarter. Paibul said that the world economy has also become more stable, prompting the BOT to revise its prediction of Thailand's economic growth this year to 6 per cent on average, instead of 5.7 per cent projected in March and 4.9 per cent in January 2012. According to the BOT assistant governor, the projected Thai economic growth this year will be boosted mainly by domestic factors, especially spending on repair in flood-damaged private businesses, the government's monetary and fiscal measures and domestic spending which had been deferred prior to late last year’s massive flooding. The BOT assistant governor assessed that Thailand's gross domestic product (GDP) growth will remain healthy next year, at around 5.8 per cent, cushioned by rising Thai exports. The Thai central bank also raised its inflation forecast for this year to 3.5 per cent, from 3.2 per cent projected in January and 3.4 per cent in March 2012, citing the country's faster than expected economic recovery with higher goods prices subsequently. Meanwhile, Deputy Prime Minister and Finance Minister Kittirat Na-Ranong said that he believes Thailand's inflation is lower than that of competitors and trading partners in Southeast Asia, insisting that the Thai government is taking right actions to solve people's rising costs of living.(TNA)