2011 Global economic growth will be less than 2010’s

BANGKOK, 22 December 2010 (NNT) – Deputy Prime Minister in charge of Economic Affairs Dr. Trairong Suwannakhiri said that the global economy next year would grow at a slower pace than it did this year due to high unemployment rates in the US and the public debt problems in Europe.

According to Trairong, the US might release its third economic stimulus package, which would create more capital outflows to the Asian region, which has already experienced high economic expansion, forcing the Asian currencies to strengthen further. In addition, the capital outflows from the US would limit the growth of Thai rice export to 15 percent.

The Deputy Prime Minister also stated the global oil price hike and climate change, which pushed up crop prices, would slow down the Thai economic growth to around 4-5 percent next year.

He advised that businesses form clusters and make more overseas investments to help neutralize the strength of the baht; he also encouraged exporters to expand their markets in ASEAN countries, especially Indonesia and Malaysia, as well as South Korea and India.

As for the nation’s financial status, the Nonperforming Loans (NPLs) accounted for only 2.05 percent of all loans, while financial liquidity was high; therefore, the Thai financial status next year would remain strong.

For the whole 2010, the economic growth was expected to be around 7.9 percent despite heavy damage from the floods and the strong baht. The year’s exports was valued at 193 billion US dollars, or 25 percent expansion from 2009’s, added the deputy Prime Minister.