Thai economy likely to resume positive growth in Q4

BANGKOK, Aug 1 (TNA) – The Thai economy is expected to resume positive growth of 1.8 per cent in the fourth quarter of this year, boosted by an expected global economic recovery, according to World Bank senior economist Kirida Bhaopichitr.

She said the world economy had already bottomed out and begun to signal a slow recovery.

It is expected the global economy will shrink 2.9 per cent this year before turning around and expanding 2 per cent next year.

Simultaneously, the Thai economy is projected to grow 1.8 per cent in the fourth quarter of this year, resulting in the economy for the whole of 2009 contracting by 2.7 per cent.

Ms Kirida said the global economic structure would change following the ongoing economic crisis.

US consumption will reduce while trade competition intensifies.

It would result in a reduction of a demand for Thai export products.

In addition, she said, global liquidity will rise in tandem with increased savings in the US, leading to increased investments in Asia, which will further strengthen the baht. (TNA)