Thai central bank confident economy will grow 3-5% as expected this year
BANGKOK, Jan 22 The Thai economy is expected to grow 3-5 per cent this year as expected earlier, given the economic growth of up to 8 per cent in 2010, according to the Bank of Thailand (BoT).
BoT Assistant Governor Paiboon Kittisrikangwan on Friday revealed the Thai economy expanded up to 8 per cent last year despite the impacts of the political disorder and natural disaster.
It reflected the countrys strong economic fundamentals, which would enable the economy in 2011-2012 to grow at a normal level. Because of this, the central bank projected the economy in 2011 would expand 3-5 per cent, slightly higher than first expected.
One of new key risk factors that need be closely monitored is the accelerated inflation rate.
It is projected the headline inflation rate this year will stay at 2.5-4.5 per cent, down from an earlier forecast of 3-5 per cent in October, since the government extended measures to reduce the cost of living for the public.
However, it is likely that inflation will accelerate after the measures end in February.
The core inflation rate is set to stay at 2-3 per cent and is likely to accelerate to more than 3 per cent, the rise remains not worrying.
Mr Paiboon said the central bank would still take into account the inflation rate in implementing monetary policy this year as fuel prices have risen to US$91.30 per barrel against $86.30 expected earlier.
Commodity and food prices are likely to increase more than expected, which would compel entrepreneurs to raise product prices after postponing the decision for some time.
In addition, there are existing risk factors that need be monitored including the global economic fluctuation, international capital movement, and political uncertainties. (MCOT online news)
BoT Assistant Governor Paiboon Kittisrikangwan on Friday revealed the Thai economy expanded up to 8 per cent last year despite the impacts of the political disorder and natural disaster.
It reflected the countrys strong economic fundamentals, which would enable the economy in 2011-2012 to grow at a normal level. Because of this, the central bank projected the economy in 2011 would expand 3-5 per cent, slightly higher than first expected.
One of new key risk factors that need be closely monitored is the accelerated inflation rate.
It is projected the headline inflation rate this year will stay at 2.5-4.5 per cent, down from an earlier forecast of 3-5 per cent in October, since the government extended measures to reduce the cost of living for the public.
However, it is likely that inflation will accelerate after the measures end in February.
The core inflation rate is set to stay at 2-3 per cent and is likely to accelerate to more than 3 per cent, the rise remains not worrying.
Mr Paiboon said the central bank would still take into account the inflation rate in implementing monetary policy this year as fuel prices have risen to US$91.30 per barrel against $86.30 expected earlier.
Commodity and food prices are likely to increase more than expected, which would compel entrepreneurs to raise product prices after postponing the decision for some time.
In addition, there are existing risk factors that need be monitored including the global economic fluctuation, international capital movement, and political uncertainties. (MCOT online news)
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