NESDB remains Thailand's economic growth at 5.5-6.5% in 2012

BANGKOK, May 21 (TNA) - The National Economic and Social Development Board (NESDB) has maintained Thailand's expected economic growth at 5.5-6.5 per cent this year, thanks to the country's accelerated industrial restoration and increased consumption and investment; while inflation is relieving as world oil prices are likely to be falling in the second half of this year. NESDB Secretary-General Arkom Termpitayapaisit said Monday NESDB has kept its projection of Thailand's gross domestic product or GDP growth in 2012 unchanged on grounds that the ongoing debt crisis in Greece should not have any significant impact on the Thai economy although it could affect other European and even several global economies. Besides, Arkom assessed that domestic consumption in 2012 should grow by 4.5 per cent, overall investment by 12.3 per cent and US dollar-denominated exports by 15.1 per cent; while the country's inflation's growth is now predicted at moderate 3.5-4 per cent this year. Arkom acknowledged that the Thai economy started growing by 0.3 per cent in the first quarter of this year, compared with its 8.9 per cent contraction in the fourth quarter of last year, boosted by restoring domestic production, consumption, investment and tourism in the wake of a flooding crisis late last year. According to the NESDB chief, domestic household consumption alone rose slightly by 2.7 per cent in the first quarter of this year, compared with its 2.8 per cent drop in the 4th quarter of last year, cushioned by repair of flood victims's houses and their purchase of furniture after the severe flooding. The NESDB chief projected that domestic consumption should return to a normal level, at 4-5 per cent growth, in the second quarter of this year, as the Thai government has stimulated the domestic consumption through a tax incentive for first-car buyers and an increase in daily minimum wages to 300 baht and in monthly salaries of new graduates to 15,000 baht, amid declining world oil prices. The NESDB chief noted that investment in the Thai private sector also grew by 9.2 per cent in the first quarter, compared with a 1.3 per cent shrink in the last quarter of 2011, due to machine and equipment maintenance; while investment in the local agricultural sector rose by 2.8 per cent, up from 1.6 per cent in the 4th quarter of 2011, due to increased yields of oil palm nuts, cassava and rubber; while overall production capacity in the local industrial sector surged to 63 per cent, up from 46.3 per cent in the last quarter of 2011. Meanwhile, the Thai Ministry of Finance's Revenue Department reported that state revenue collected from the value-added tax in April-May 2011 has shown a positive sign boosted by people’s spending. Besides, Prime Minister Yingluck Shinawatra has ordered the Ministry of Commerce to guarantee sufficient supplies of farm products to curb their prices on the domestic market. (TNA)