UTCC:Thai economy will likely grow 5% in 2012

BANGKOK, March 2 (TNA) - Bangkok-based University of the Thai Chamber of Commerce's Economic and Business Forecasting Centre said in its latest projection, announced on Friday, that the Thai economy is likely to grow by over 5 per cent this year. The centre's director, Thanawat Polwichai, said that the revised prediction of Thailand's gross domestic product or GDP growth rate in 2012, from his centre's previous projection of 4.5-5.0 per cent, was based on improving key economic indicators. Thanawat cautioned, however, that rising world oil prices remain a main risk factor of the rebounding Thai economy, in the wake of the country's flooding crisis late last year, saying if the world oil prices soared to 140-150 US dollars per barrel, they could affect Thailand's economic expansion. World oil prices for next month's contracts stood at 108.84 US dollars per barrel in New York on Thursday; while those of Brent crude stood at 125.65 US dollars per barrel in London. Meanwhile, the centre also reported that Thailand’s consumer confidence index (CCI) rose to 75.5 last month, the highest in five months, thanks to Bangkok's Constitutional Court's recent ruling in favour of two new executive decrees allowing the Thai government to borrow 350 billion baht in loans for post-flood rehabilitation, which should result in domestic political stability and national economic expansion. (TNA)