Thailand
Thailand: Growth estimate for year-end edges up to 1.2 per cent: Arkhom
Thailand’s GDP is expected to grow by 1.2% by the end of this year after the country reopened to foreign visitors this month, Finance Minister Arkhom Termpittayapaisith said.
Speaking at a seminar held by the Thai Chamber of Commerce yesterday, Mr Akrhom said the economy is predicted to grow by 1.1-1.2%, higher than an earlier estimate of 1% by the Finance Ministry, thanks to the reopening which is putting the economy and tourism back on track to recovery in the final quarter of the year.
During the first nine months, the economy grew by 1.3%, Mr Arkhom added. ”For 2021, a factor contributing to GDP growth is domestic demand, including domestic tourism and state spending which helps maintain domestic consumption,” he said.
”However, there is still concern about risk factors such as the new surge of Covid-19 and the global economic recovery. But we believe we will be able to achieve this growth by year-end,” Mr Arkhom said.
Next year’s expansion is predicted to be between 3.5-4.5% as a result of factors such as efforts to bring Covid-19 under control, supporting the recovery of the business sector, stimulating household spending, promoting private sector investment, and government spending, Mr Arkhom said.
As for next year’s economic management, the government will focus on inclusive growth, he said, adding it is important to strengthen the grassroots economy which will serve as a cushion against the effects of any economic crisis.
The government will also support a link between community economies with major supply chains and will also have to deal with the twin deficits involving a current account deficit and a fiscal deficit, Mr Arkhom said.
He said the money spent on rehabilitating the economy accounted for 14.6% of GDP, while spending under quasi-fiscal policies made up for 4.2%. As a result of such policies, public debt increased to 57% of GDP at the end of September, and is predicted to surge to 62% at the end of next September. However, such increases still remain within the ceiling of the public debt-to-GDP ratio which was raised from 60% to 70%, Mr Arkhom said.
Meanwhile, Deputy Prime Minister and Commerce Minister Jurin Laksanawisit said exports from January to September grew by 15.5%, worth about 6.2 trillion baht, compared to an earlier estimate of 4%. Export growth for October is expected to grow by at least 15%, which in turn will help boost this year’s overall export growth by 15-16%.
Source: https://www.bangkokpost.com/business/2218775/growth-estimate-for-year-end-edges-up-to-1-2-per-cent-arkhom