TMB Bank projects GDP grows 3.5%

BANGKOK, Jan 22 (TNA) -- TMB Bank Public Co, Ltd forecasts that Thailand’s economy would this year sustain growth 3.5 per cent while its loan to grow between 8 – 10 per cent, said TMB Bank chief executive officer Boontak Wangcharoen. There are positive signs that national economy would grow 3.5 per cent compared to 2.7 per cent in 2015 on the back of public investment which is projected to expand 6.5 per cent and its spending 4 per cent, said Mr Boontak. The government has allocated 500 billion baht on investment, equivalent to 20 per cent of its total budget, while there is another 150 billion baht to be invested on basic infrastructure this year, he said. Also, there are signs that the government would issue more economic stimulus measures aimed at stimulating domestic demand which would improve consumer confidence and an investment climate, said Mr Boontak. Private investment and consumption are expected to recover during the second half this year. Exports are projected to sustain growth and would expand to 2.5 per cent from 1.3 per cent last year amid concerns on China’s economic slowdown and domestic severe drought which would impact income of agriculturists and recovering domestic consumption. Mr Boontak said a possible volatility of Chinese stocks and an increase of US Federal Reserve rates would negatively impact capital movements in niche market. On domestic interest rates, he said the Bank of Thailand’s Monetary Policy Committee may hike its rates by 25 basis points on the condition that Thailand’s economy improves in the third quarter this year. (TNA)