ADB:Government's mega-projects will stimulate Thailand's GDP growth

BANGKOK, March 30 (TNA) - The Manila-based Asian Development Bank (ADB) says that the Thai government's investment in mega-projects will help stimulate the national economic growth in the coming years. Luxmon Attapich, ADB's senior economist for Thailand, told journalists on Wednesday of the prospect, which is included in ADB's analytical report 2016 on the entire Asian economy and the Thai economy. Luxmon quoted the ADB report as saying that key engines to drive forward Thailand's gross domestic product (GDP) growth should be public investment in transport projects, expected to be started with some 20 projects worth 1.7 trillion baht this year namely railway, airport and port expansion. Luxmon revealed ADB has foreseen that Thailand's public investment should grow by 10 per cent this year, which should also help boost confidence in the private sector and induce more private investment. Luxmon acknowledged ADB has, however, predicted that the Thai economy should grow by 3 per cent this year, instead of 3.5 per cent earlier estimated,reasoning that key sectors in the Thai economy have not been recovering healthily, while the country is also facing drought, low prices of farm products and huge household debts equivalent up to 81 per cent of the Kingdom's GDP. ADB assessed that the Thai government's new economic stimulus measures for the upcoming Songkran or the traditional Thai New Year Festival should not have a significantly-positive effect on the country's GDP growth this year. ADB, nonetheless, projected that Thailand's GDP should further expand by 3.5 per cent next year, private consumption should gradually grow this year and expand faster next year, while inflation should stand at 0.6 per cent in 2016 and 2 per cent in 2017 when people's purchasing power, domestic consumption and oil prices should also increase. According to the ADB report, risk factors remain in the Thai economy, including drought, lower farm productivity, low prices of farm products, high household debts, possible delay in government mega-projects, economic problems in trading partners and uncertainty in capital flows. The ADB report suggested that Thailand reform education, promote the service sector and small and medium-sized enterprises (SMEs) and invest more in research and development (R&D) projects to sustain the national economic growth in the long run. (TNA)