Finance Ministry revises Thailand’s economy

BANGKOK, July 28 (TNA) -- Spending by the government, especially on infrastructure projects, and favourable exports, have prompted the Ministry of Finance’s Fiscal Policy Office to revise Thailand’s economic figures for 2018 forecast earlier, said Kullaya Tuntitaemitr, inspector-general of the ministry. Ms Kullaya said gross domestic product (GDP) is now projected to grow at 4.5 per cent, up from 4.2 per cent growth projected in April, on the back of increase in exports and the public spending during the current 2018 fiscal, started last October 1. This year’s exports are now projected to increase by 9.7 per cent, up from 8 per cent, while imports would rise from 12.5 per cent to 14.9 per cent and private consumption is now projected to increase from 3.5 to 3.8 per cent. Private investment is expected to increase to 3.9 percent from 3.8 per cent, said Ms Kullaya. Core inflation is expected to increase and remain unchanged at 0.7 per cent with current account is now projected to enjoy a surplus at 44.3 billion U.S. dollars, or about 8.8 per cent of GDP. The Thai currency, baht is expected to remain strong until late this year. It is projected to stay at 32.25 baht per US dollar, up 5 per cent from 2017. The Bank of Thailand is expected to maintain its policy interest rate at 1.5 per cent until the end of 2018, said Ms Kullaya. Expressing her optimistic on the further increase of GDP to 5 per cent within 2018, Ms Kullaya said the rise is possible if planned investments meet target along with additional measures to be issued by the government, especially measures to support small and medium-sized enterprises. By the end of first half this year, Thailand’s economy continued growing due to favourable export, tourism and domestic consumption, Ms Kullaya added. (TNA)