Kbank sees Thai economy growing 2.5-3.5% next year

BANGKOK, Nov 12 (TNA) – Thailand’s economy is likely to expand by 2.5-3.5 per cent next year, boosted by the state-supported economic stimulus measures and the recovery of the export and tourism sectors, according to a top banker.

Kasikornbank Executive Vice President Wasin Wanichworanant said his bank targeted loan growth in the corporate and business banking groups of Bt301.6 billion or 3-4 per cent in response to expected economic growth in 2010.

He said positive factors to Thai economic growth include the state-supported stimulus package, export and tourism recovery, and high financial liquidity.

Negative factors include substantial oil prices, which are expected to stay in a range of $75-85 per barrel, that could fuel the inflation rate, weak purchasing power of consumers, and political uncertainties.

Regarding the downgrading of diplomatic ties between the Thai and Cambodian governments, he said the bank felt worried about the matter and had closely monitored possible impacts from it regarding two issues including direct investment by Thai business people in Cambodia and border trade. (TNA)