UTCC:Thai economy is likely to grow by 3.5% in 2013

BANGKOK, October 17 (TNA) - Bangkok-based University of the Thai Chamber of Commerce (UTCC) has predicted that Thailand's gross domestic product (GDP) is now likely to grow by 3.5 per cent on average this year, from its earlier projection of 3-4 per cent. Thanawat Polvichai, Director of the UTCC's Economic and Business Forecasting Center, told journalists on Thursday that the revised projection of Thailand's economic growth this year was based on the fact that the national economy does not expand as well as earlier expected in the second half of this year, as economic problems have continued in such major Thai export marekts as the United States, Japan and the European Union (EU). Thanawat assessed that the value of Thai exports should increase by only 1.5 per cent year-on-year this year, instead of the earlier anticipated rate of 3-5 per cent, while Thai imports should grow by 3.9 per cent year-on-year. Consequently, Thanawat acknowledged, Thailand is likely to post a trade deficit of about 25 billion US dollars this year, up from 20 billion US dollars last year, while inflation should stand at 2.3 per cent and the Thai baht value at 30-31 baht a US dollar. Meanwhile, Payungsak Chartsutipol, Chairman of the Federation of Thai Industries (FTI), said that the Thai Industries Sentiment Index (TISI) stood at 90.4 points in September 2013, a drop from 91.3 a month earlier and its lowest in 23 months, and that the TISI decline had also continued for 15 consecutive months. The FTI chief cited business operators' concerns over flooding in many areas in Thailand, as well as a slowdown in domestic and overseas economies, rising production costs and domestic political problems as reasons for the decreased TISI. However, the FTI chairman noted that the business operators hope the government's investment in new mega-infrastructure development projects will progress and play important roles in stimulating the national economy during their implementation over the next seven years. (TNA)