Vol. II No. 42 Saturday October 18 - October 24, 2003
Home
Automania
News
Business News
Book-Movies-Music
Columns
Community
Happenings
Dining Out & Entertainment
Features
Kids Corner
Letters
Social Scene
Sports
Travel
Who's who
 
Free Classifieds
Back Issues

BUSINESS NEWS
HEADLINES [click on headline to view story]:

IMF suggestion on inflation brushed aside

Free organic fertilizer to be distributed to 2 million farmers

Higher investment will help sustain growth: KRC

Interest rates will stay low for at least 18 months says BOT governor

IMF suggestion on inflation brushed aside

The Bank of Thailand (BOT) and the National Economic and Social Development Board (NESDB) have brushed aside a suggestion by the International Monetary Fund (IMF) that the country raise the target inflation rate from zero to prevent possible deflation.

Previously, the IMF had projected the Thai economy would continue to grow this year. However, it said the government should closely supervise the economic development since the financial and business sectors remained engulfed with non-performing loans.

The IMF also suggested that the BOT consider increasing the target minimum inflation rate from zero to stand in positive territory because the inflation rate, if allowed to stay very low, would put the economy under the pressure of deflation should there be any crisis.

BOT’s Governor M.R. Pridiyathorn Devakula said still saw no need for the country to raise the target inflation rate.

Chakramon Phasukavanich, NESDB’s Secretary-General, said that he did not think the Thai economy was on the path to deflation, adding that inflation would increase automatically when the economy continued to grow. “We should not accelerate consumption in an excessive manner. The consumption will grow naturally when the economy expands,” he concluded. (TNA)


Free organic fertilizer to be distributed to 2 million farmers

The Land Development Department is preparing to distribute free organic fertilizer to two million farming households as part of the government’s campaign to promote 2004 as a year for food safety and organic farming.

The department’s Director-General Ard Somrang said, “The fertilizer will reduce farmers’ reliance on chemicals and improve the quality of their soil so they can move over to organic agriculture and increase their incomes.”

The organic fertilizer developed by the department will not only increase yields by 10 percent and cut costs by another 10 percent, but could also cut the use of chemicals by 30 percent. (TNA)


Higher investment will help sustain growth: KRC

Overall investment in the country is likely to grow 13-15% next year, which could help sustain the economic growth, according to a report just put out by KASIKORN Research Center (KRC). The think tank reported that aside from exports, investment would play a vital role in boosting the economic expansion in 2003-2004.

The report projected that private investment will continue to increase next year, boosted by impressive operating results in the business sector, higher production capacity utilization, and inflow of foreign direct investment. As well, the improved fiscal position should push up public investment, which had contracted since 1998.

The research center warned, however, that government should maintain the quality of investment and the stability of the economy. It urged caution about speculation in assets, particularly stocks and property, to avoid a repetition of the economic crisis in 1997. (TNA)


Interest rates will stay low for at least 18 months says BOT governor

Bank of Thailand (BOT) Governor M.R. Pridiyathorn Devakula has projected local interest rates will continue to stay low for at least 18 months.

Pridiyathorn said, “Private investment and consumption has played a key role in boosting economic growth. Private investment dropped to 14% of the country’s gross domestic product (GDP), from 25% before the economic crisis in mid 1997. It is necessary to keep the interest rates low to stimulate the private investment and consumption. We expect the rates will stay low for at least a year and a half until investment continues to increase to an acceptable level.” (TNA)



Chiangmai Mail Publishing Co. Ltd.
189/22 Moo 5, T. Sansai Noi, A. Sansai, Chiang Mai 50210
THAILAND
Tel. 053 852 557, Fax. 053 014 195
Editor: 087 184 8508
E-mail: [email protected]
www.chiangmai-mail.com
Administration: [email protected]
Website & Newsletter Advertising: [email protected]

Copyright © 2004 Chiangmai Mail. All rights reserved.
This material may not be published, broadcast, rewritten, or redistributed.

Advertisement