Most Thai economists see economy growing 1.45% in Q4

BANGKOK, Oct 7 (TNA) – Most Bangkok-based economists believe that the Thai economy will grow only 1.45 per cent in the fourth quarter of this year, according to a survey conducted by Bangkok University’s Research Center or the Krungthep Poll.

The results of the survey, which sought the opinions of economists from 14 leading organisations in Thailand on the “Projection of Thai Economy in 4th Quarter of 2009,” stated that the economists comments lived up to the expectation of the government that the economy would turn positive in the fourth quarter, boosted by the state-initiated economic stimulus package.

However, the economists also see the inflation rate continuing in negative territory at 0.7 per cent and, consequently, the Bank of Thailand (BoT) will maintain its policy interest rate at 1.25 per cent until the year end to stimulate the economy.

They also predict that the baht will appreciate to remain in the range of 31.1-33.6 to the US dollar, which could deter Thailand’s exports and economic expansion in the future.

The economic gurus proposed that the state sector stimulate the economy through investment and employment rather than consumption because it would contribute to strong economic growth in the long term and boost the country’s competitiveness.

Still, the stimulus measures must be taken openly and transparently.

The economists expressed concern that Thailand’s political woes could continued as a key deterrent to economic growth. (TNA)