IMF:Thai economy will likely grow 5.5% in 2012

BANGKOK, May 12 (TNA) - The US-based International Monetary Fund (IMF) has projected that the Thai economy will likely grow by 5.5 per cent and 7.5 per cent on average in 2012 and 2013 respectively. According to a Bank of Thailand (BOT) latest statement released this week, the IMF Executive Board concluded an Article IV Consultation with Thailand on April 27, indicating that Thai authorities’ policy response to the country's flooding crisis late last year has propelled a strong recovery of the national economy. The IMF also cautioned, while the Thai economy's short-term outlook is favourable, significant downside risks remain due to uncertainties related to the global economy and progress of the Thai government's flood prevention measures. The IMF suggested that the Thai government speed up post-flooded rehabilitation while maintaining macroeconomic stability and promoting inclusive growth, and that rising daily minimum wages be accompanied by measures boosting labour productivity to maintain Thailand's competitiveness. The IMF executive board voiced its support for the Thai authorities’ plans to gradually relax restrictions on capital outflow while ensuring adequate safeguards and welcomed progress made in developing the domestic financial market, calling, however, for swift actions to mitigate risks from government-owned financial institutes by refocusing them on their core mandates, as well as improving official risk assessment standards and strengthening supervision. (TNA)