UTCC:Thai economy should grow by 5-5.6% in 2012

BANGKOK, August 10 (TNA) - The Centre for Economic and Business Forecasting under Bangkok-based University of the Thai Chamber of Commerce (UTCC) has foreseen that the Thai economy should grow by 5.0-5.6 per cent this year. According to the centre's director, Thanavat Polvichai , the Thai economy could grow by 5.6 per cent this year, or 5-5.5 per cent if the government did not succeed in its economic stimulus measures and ongoing economic problems in the United States and Europe worsened. Thanavat acknowledged that the total value of Thai exports has fallen by 500 billion baht due to the eurozone debt crisis, and that the ongoing debt crisis in Europe should also limit the growth of Thai exports at 5.8 per cent this year, instead of 15 per cent as earlier expected, and Thailand should, therefore, lose 300-500 billion baht worth of national income from exports. Thanavat urged the Thai government to stimulate domestic consumption and investment and speed up spending state budgets, including those on flood prevention projects, to further boost the national economy. Meanwhile, Wichai Atrasakorn, Secretary-General of the Thai Chamber of Commerce, cautioned that there could be direct negative impacts on eight Thai industries from the ongoing European debt crisis, including textile and garments, jewelry, electrical and electronic products, food, rubber, tourism, automotive part and rice, which normally account for 25-30 per cent of the total Thai export worth some 6 trillion baht, as the total export value in the eight Thai industries had dropped over the past six months.(TNA)