Thai experts: World economy will not recover fully in 2013

BANGKOK, October 17 (TNA) - Thailand's experienced economists have warned that the world economy will not recover fully next year and the government and the private sector should not, thus, borrow excessively, as local business operators, especially small and medium-sized enterprises (SMEs) will continue to face rising costs. Bangkok of Thailand (BOT)'s former deputy governor Bandid Nijathaworn, who is now President of the Thai Institute of Directors, on Wednesday told a seminar in Bangkok on challenges of the Thai economy that the world economy would slowly recover next year and would continue affecting Thai exports. Bandid assessed that there should be capital inflows and suggested that the Thai government focus on boosting domestic consumption, instead of Thai exports, in driving the national economy ahead, as well as limit its borrowing to contain public debt. Phatra Securities Public Company Limited Managing Director for Research Supawut Saichua said he foresaw worldwide policies of liquidity injection and low interest rates would continue for at least two years, which would cause speculations in assets, especially land, cautioning over positive prospect of the policies only in the short term, but there should be concerns in the long term, as people may think they can afford more borrowing. Federation of Thai Industries (FTI) Vice Chairman Tanit Sorat acknowledged that local SMEs would continue coping with impacts from the global economic slowdown and the 300-baht daily minimum wage in the country, which have caused SMEs in other provinces to bear higher costs than those in Bangkok and reduced their competitiveness, warning that many SMEs will, probably, shut down over the next three years. (TNA)