Bangkok Bank: Thai econ to remain weak despite 3% growth

BANGKOK, 17 December 2009 (NNT) – Bangkok Bank has estimated the Thai economy next year to remain weak despite prospective growth of 3%. This is due to both domestic and international risk factors which have affected investors’ confidence.

Mr Kosit Panpiemras, the chairperson of the board of executive directors of Bangkok Bank, speculated that the Thai economy in the last quarter this year could rebound to positive territory but the economy in general for this year would contract by 3%. As for next year, he said the economy would remain weak although it could expand by 3%.

The chairperson viewed that the Thai economy was still at risk since the global economic recovery was not strong while problems from the Map Ta Phut projects suspension also exacerbated the situation. He suggested the government to conduct policies to drive the economy forward and solve the Map Ta Phut problems in a more integrative manner.

Mr Kosit continued to say that the government next year might be at risk for being unable to utilize the monetary policy to the fullest extent as the Bank of Thailand had been reducing the interest rate policy. He believed that Thailand would have to increase the interest rate following movements of other countries.

Regarding the decision of the cabinet to extend relief measures for low-income earners for another three months, the chairperson said that the reasons were acceptable. He then commented that the government could solve the economic problems throughout its one year in office amid surrounding difficulties.