NESDB:Thailand's projected GDP growth revised to 5-6% in 2012

BANGKOK, August 20 (TNA) - The National Economic and Social Development Board (NESDB) has revised its projection on Thailand's gross domestic product (GDP) growth rate this year to 5.5-6.0 per cent, instead of 5.5-6.5 per cent as earlier forecast, due mainly to a drop in Thai exports to traditional major markets. NESDB Secretary-General Arkom Termpitayapaisit told reporters on Monday that ongoing economic problems in the United States and Europe are affecting Thai exports, with total value of Thailand's shipments to overseas markets this year likely to expand by only 7.3 per cent, instead of 15.1 per cent as earlier expected. Arkom acknowledged that the value of Thai exports to Europe has dropped by 7.5 per cent so far this year and that to Japan has declined by 1.4 per cent, and that the NESDB has, therefore, revised its projection of Thailand's GDP growth in 2012 to 5.5-6.0 per cent, instead of 5.5-6.5 per cent as earlier estimated; while the country's general inflation rate is expected to run at 2.9-3.4 per cent this year, instead of 3.5-4 per cent. According to the NESDB chief, the Thai economy grew by 4.2 per cent in the second quarter of this year, on top of its 0.4 per cent expansion in the first quarter, resulting in an average 2.2 per cent growth of the national economy in the first half of this year, compared with its corresponding period last year, boosted mainly by household spending in response to a daily minimum wage hike to 300 baht and other government economic stimulus measures. The NESDB chief noted that Thailand's tourism sector had also played important roles, as the Kingdom welcomed overall 10.5 million international visitors in the first half of this year, some 7.6 per growth compared with the same period last year, and that fully-resumed production by local manufacturers affected by a massive flooding late last year, as well as the recovery of consumption and investment in the local private sector should be major forces to drive ahead the national economic growth in the second half of 2012. (TNA)