BANGKOK, Jan 13 (Bernama) -- In its world economic outlook report, the World Bank predicts that the Thai economy will grow by only 3.2 percent this year, the lowest growth in Asia in five years and drop from its 7.5 percent expansion which was the highest growth in Asia last year, Thai News Agency (TNA) reported.
Thailand-based World Bank economist Frederico Gil Sander said the Thai economy grew at slower paces in the third and the fourth quarters of 2010.
Besides, Thai tourism did not fully recover because tourists from the United States and Europe did not return to Thailand.
That caused the Thai economy to grow only by 5 percent during the period and its growth rate will thus be the lowest in Asia this year.
However, Sander pointed out that a general election this year would stimulate local consumption and the new nine-point Pracha Wiwat social welfare scheme of the Thai government would raise local spending.
If the Thai politics is more stable or sends a positive signal, the World Bank will raise the expected Thai economic growth rate to over 4.2 percent next year.
Regarding risk factors of the Thai economy this year, Mr Sander said that concerns about public debts in Europe persisted.
If the problem gets worse, it will have negative impacts on the economy. Besides, inflation is rising faster than expected.
If the Bank of Thailand raises its repurchase rate too fast, that will stall local demands and affect the overall economy.
Source: Bernama.com
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