Durakij Bundit lowers growth; SMEs to improve in Q2

BANGKOK, March 15 (TNA) -- Durakij Bundit University has lowered Thailand’s economic growth for 2016 to 2.75 from 3 per cent while it is optimistic that businesses of small and medium-sized enterprises (SMEs) would pickup from second quarter. Kiatanan Luankaew, dean of Faculty of Economics at the university, said it has also lowered gross domestic product (GDP) for SMEs in 2016 to 2.6 from earlier projection of 2.8 per cent growth due to prevailing sluggish economy in the country while the government’s injection of loans amounting more than 100 billion baht has only reached one-fourth of 2.7 million total SMEs. If the government loans reached more SMEs, they would grow 1-2 per cent in the next few years, said Mr Kiat-anan. He said a survey conducted among 437 SME operators nationwide found that majority of them agreed Thailand’s economy during the first quarter this year deteriorated while most them were optimistic that national economy would improve in the second quarter. Also, 57.8 per cent of the operators said during the survey that their income fell short of expectations due to weak purchasing power of people in the country, a higher competition and wages, and sluggish global economy. SME operators also said they were worried about drought problem which could affect their businesses during the second quarter. (TNA)