BoT sees moderate
expansion for Thai economy
The Thai economy will continue to expand moderately this
year although it has been affected by the global economic crisis, according
to a senior official at the Bank of Thailand.
Speaking at a seminar on “The BoT’s Role in Turning Around the Thai
Economy,” Songtham Pinto, senior official in charge of the Monetary Policy
Group’s Macro-economy Division, said the Thai economic malaise was
attributed to the global economic recession, particularly in the United
States and Europe.
Now, it has escalated and spilled over to Asia and had an impact on
Thailand, particularly its exports.
He said what the government and all parties concerned should do to cope with
the economic downturn is to restore consumers’ confidence and encourage the
public to spend and invest more.
Simultaneously, various fiscal measures must be taken to stimulate the
economy at the grass roots level.
He said the Monetary Policy Committee’s move the cut the policy interest
rate sharply to 2 percent would help ease borrowing costs, encouraging
investors to invest more.
Songtham said the central bank maintains its economic growth estimate for
this year at 0.5-2.5 percent, but it will revise its projection on January
Songtham believes the Thai economy will not shrink this year despite the
seriousness of the global economic crisis, but will continue to expand
moderately while inflation rates will remain low. (TNA)