NESDB expects 2.9% GDP growth despite violence in France

BANGKOK, Nov 14 (TNA) -- The National Economic and Social Development Board (NESDB) projects the Thai economy will expand by 2.9% this year to show the first higher growth rate in three years and the rate should be 3-4% next year as economic figures were promising in the third quarter of 2015. NESDB secretary-general Porametee Vimolsiri said the economy grew by 2.9% in the third quarter, up from 2.8% in the second quarter, and the growth rate was 2.9% in the first nine months of this year. The global economic slowdown caused the export of Thai products to shrink by 1.9% but the export of Thai services rose by 17.5%. That resulted in the overall export increasing by 1.8%. He viewed that as a positive sign. Besides, Thailand generated 359 billion baht from 7.3 million visitors and this shows an increase of 24.3%. Overall investment rose slightly by 1.2%. Investment by the private sector fell by 6.6% because of slowdowns in construction and import. Due to the positive sign, the NESDB projects the gross domestic product will grow by 2.9% throughout this year. Export will fall by 0.5%, household consumption will rise by 2%, overall investment will expand by 4.6% and headline inflation will drop by 0.8%. In 2016 the NESDB projects the GDP will increase by 3-4%, the value of export will rise by 3%, overall investment will go up by 9.5% and headline inflation will run at 1-2%. Economic driving forces will be government spending, economic stimulus measures, the slow recovery of the global economy and baht depreciation. Risk factors will be drought and the Chinese economy that may expand by 6.7%. Violence in France will have temporary impacts on tourism. The NESDB forecasts the number of visitors to Thailand will rise from 7.3 million in the third quarter to 8.1 million in the fourth quarter and thus the yearly arrivals should reach 30 million throughout 2015. It also expects the number of visitors will further rise to 32 million next year. (TNA)