Thailand's economic growth forecast maintained at 3-4%

BANGKOK, July 3 (TNA) - The Thai Ministry of Commerce has maintained the country's economic growth forecast in 2017 at 3-4 per cent year-on-year, but lowered its inflation rate projection to 0.7-1.7 on average, thanks to a drop in world oil prices and the changing Thai baht value. Pimchanok Vonkorpon, Chief of the ministry's Trade Policy and Strategy Office (TPSO), told journalists of the update on Monday, saying that the new projection of Thailand's inflation rate this year is lower from the previous projection of 1.5-2.2 per cent on average. Pimchanok explained that Thailand's general inflation rates have dropped for two consecutive months to the lowest level in 14 months, with the inflation rate last month alone declining by 0.05 per cent due to a year-on-year drop in the prices of non-alcohol drinks and fuel products. According to the TPSO chief, Thailand's average inflation rate in the first half of this year slightly rose by 0.67 per cent year-on-year and is expected to further rise during the rest of the year, boosted by the government's economic stimulus measures and the upturn global oil prices. The senior official reiterated on lowering the country's average inflation rate projection this year to 0.7-1.7 per cent year-on-year in 2017 due mainly to an anticipated drop of world crude oil prices to around 45-55 US dollars a barrel this year, from 50-60 US dollars a barrel expected earlier, while the Thai baht is foreseen to hover around 34-36 baht a US dollar. The senior official acknowledged that her ministry is monitoring updates to see whether the government's move last week to enforce the new tough executive decree on the management of migrant workers in the country should have any impact on the domestic production sector and inflation trend. (TNA)