Rangsit University: Thai economy will likely grow by 5.8-6.5% in 2012

BANGKOK, April 20 (TNA) - Thailand's Rangsit University has forecast that the national economy will likely grow by 5.8 - 6.5 per cent in 2012. Anusorn Tamajai, a well-known Thai economist and Dean of the private university's Faculty of Economics, said on Thursday that domestic interest rates should also remain unchanged or slightly drop this year, when Thailand's inflation should be higher than expected, at 3.5 - 4.5 per cent, and the price of Dubai crude oil should rise to around 148 U.S. dollars per barrel. Anusorn warned that, apart from inflation, risk factors encountering the Thai economy this year include domestic politics and impacts from the ongoing European debt crisis. According to the senior economist, daily minimum wage hikes to 300 baht should not affect Thailand's employment figures, as labour shortages have remained in various sectors in the Thai economy and without the minimum wage hikes, there will likely be low incentives for working in Thailand, particularly for foreign workers. Anusorn acknowledged, however, that the minimum wage hikes may affect employment terms, as, for instance, firms may hire workers on a per-job or on a daily basis, instead of on a long-term contract. Overall, Anusorn projected that the daily minimum wage hikes should raise costs of production of local small and medium-sized enterprises (SMEs) by 6.4 per cent. (TNA)