Thailand ’s Fiscal Policy Office has predicted the country’s economy will grow 4-5 percent in 2015 although export growth may remain slow.
FPO Deputy Director General Ekniti Nitithanprapas said that state spending will play an important role in driving Thailand ’s economy forward next year.
The government budget disbursement to implement various construction projects, particularly the infrastructure network development plan, will boost confidence in the private sector and lead to more investment and cash circulation in the local economy, he said.
However, he estimated that next year’s export growth will remain low because the global economic recovery will likely be sluggish, especially when China ’s economy, Thailand ’s number-one trading partner, is expected to see slow growth.
Ekniti added that the rise in Thailand ’s aggregate debt will slow down to 6-7 percent in 2015, compared to the 20 percent growth in 2013, because local financial institutions have become stricter in their loan approvals as household debt levels remain high.
He went on to say that the baht is also expected to depreciate next year when the US Federal Reserve will likely raise its benchmark interest rate - a decision that may make funds flow out of Thailand.-VNA
FPO Deputy Director General Ekniti Nitithanprapas said that state spending will play an important role in driving Thailand ’s economy forward next year.
The government budget disbursement to implement various construction projects, particularly the infrastructure network development plan, will boost confidence in the private sector and lead to more investment and cash circulation in the local economy, he said.
However, he estimated that next year’s export growth will remain low because the global economic recovery will likely be sluggish, especially when China ’s economy, Thailand ’s number-one trading partner, is expected to see slow growth.
Ekniti added that the rise in Thailand ’s aggregate debt will slow down to 6-7 percent in 2015, compared to the 20 percent growth in 2013, because local financial institutions have become stricter in their loan approvals as household debt levels remain high.
He went on to say that the baht is also expected to depreciate next year when the US Federal Reserve will likely raise its benchmark interest rate - a decision that may make funds flow out of Thailand.-VNA
