TDRI: Govt economic packages will not have significant impact on economic growth

BANGKOK, Dec 2 (TNA) -- Thailand Development Research Institute Foundation or TDRI said that the Government economic packages, aiming to stimulate public spending would only boost the domestic economy by less than one per cent. Research Director for International Research and Advisory Service Ms Kirida Bhaopichitr said that the government's measures - the holiday and shopping tax break, aimed to help stimulate the national economy during the year's end, would surely encourage more spending among the public but would not have that much of a positive effect on the country's GDP, less than one per cent to be exact. She said the value which could be used to deduct the personal income tax is not that high, only between 15,000-30,000 baht, noting that she believes that some consumers already have plans to do some shopping during the New Year, though the measure would only motivate the public to shop easier, as there are more promotions. Ms Kirida, however, has maintained the GDP growth projection at three per cent, despite that fact that the national tourism is affected by the eradication of illegal tours, as the Thai export sector has done better than expected and would remained stable, in contrary to prior predictions that it would decline. In the mean time, she said, the domestic economy in 2017 would improve, expanding by about 3.2 per cent, with exports growing by at 1 per cent, whereas the consumption from the private sector would also improve, as the state investments would become the main drive for the economy. As for the tourism sector, Ms Kirida said it would also bounce back next year, after the government had completed its reforms, prompting the country to receive more quality tourists. Tourism is expected to expand by 5-7 per cent in 2017. (END)