Thai economy to recover in 2016

BANGKOK, 19 Dec (TNA) -- Thailand’s economy is projected to recover gradually in 2016 and could grow 3 per cent while the government should invest on its infrastructure projects cautiously, said Voravan Tarapoom, chairperson of Federation of Thai Capital Market Organizations (FETCO). Although the country’s economy is projected to expand 3 per cent in 2016, Ms Voravan said there are several risk factors prevailing in the Thai economy including rising household debt, volatility in domestic political situation and drought which could become worsen from the second quarter of 2016. She said the rate increase by a quarter point by the US Federal Reserve effective Wednesday would force local business entrepreneurs suffering from debts in US dollar to become prudent in conducting businesses. Healthcare business and those related to tourism industry still show sign of long-term growth because Thailand is experiencing growing number of aged people, she said. Small and medium-sized enterprise business and agricultural-related businesses still need to monitor closely. Meanwhile, Prinn Panitchpakdi, managing director of CLSA Securities (Thailand) Ltd, said that investment climate in emerging economy markets is expected to become more volatile in 2016. Risk factors include a slow down in global economy, especially China which may have use both financial and monetary measures to assist to prevent the country’s economic growth from declining below 6.5 per cent, said Mr Prinn. He said the Thai government’s plans to invest on infrastructure projects in 2016 could help stimulate the country’s economy only in sort-term. Mr Prinn suggested that the government should persuade the private sector to jointly invest in its-sponsored projects and to also induce foreign businessmen to invest in Thailand, especially in heavy industries which require huge investment. (TNA)