Somkid: Stimulus measures, investments to carry economy

Deputy Prime Minister Somkid Jatusripitak (standing, left)

welcomes Chinese State Councilor Wang Yong (standing, right)

 at Government House on Wednesday as the two opened a

Thai-Chinese Joint Committee on Economic Cooperation meeting.

 (Photo by Thiti Wannamontha)

The economy will expand by 4% next year on the back of new

stimulus measures and infrastructure projects, Deputy Prime

 Minister Somkid Jatusripitak said on Thursday.

The minister said the economy had moved out of its slump

 and into expansion mode, driven by new government initiatives

 to stimulate growth, including investment in infrastructure.

He projected gross domestic product to be between 2.9% and 3%

 this year and increase to 3.5-4% in 2016.

Mr Somkid said economic fundamentals remained strong, with high

foreign reserves of UScopy57 billion, short-term foreign debt

of only $55 billion and an unemployment rate of just 0.9%.

"Although this year's growth will be slow, the government's

 accelerated spending and stimulus will lift the confidence of

 consumers and industrial sectors," he told the Thai-Chinese

Business Forum, jointly organised by the Board of Investment

 and Commerce Ministry.

He hoped for more investments from the Chinese government

 and investors, especially on rail lines, to tighten the two countries'

 economic ties.

 Their trade is expected to reach US$60 billion this year and

$70 billion next year.

 Thailand and China will hold a ground-breaking ceremony for

their joint rail project at Chiang Rak Noi station in Bang Pa-in

 district in Ayutthaya province on Saturday, although

construction will not begin yet, as negotiations have not

 been concluded. Loan conditions remain a key sticking point.

Thailand is bargaining with China to keep the rate under 2%.

Deputy Prime Minister Prajin Juntong and Chinese State

Councillor Wang Yong will chair the symbolic ceremony.

The Chinese visitor is on a visit to Thailand for a meeting of

the Joint Committee on Economic Cooperation at Government

 House with Mr Somkid.

 Prime Minister Prayut Chan-o-cha told Mr Wang at Government

House that he hoped the talks on the train projects will be wrapped

 up soon.

The Bank of Thailand on Wednesday pegged its 2016 economic

 growth forecast at close to 3.7%. It will give new projections on

Dec 25.

Growth last year was just 0.9%, the weakest since flood-hit 2011.

Mr Somkid said the Federal Reserve's US interest rate increase

 was likely to have only a small impact on Thailand, and he was

 not concerned about capital outflows.

BoT governor Veerathai Santiprabhob told reporters on Thursday

 the Fed's move was expected and its tightening pace would be

gradual, so there "should not impact or create volatility in

 financial and capital markets".

He said given policy divergence among big central banks,

which would impact exchange rates, the business sector would

have to give importance to managing exchange-rate the business

 sector would have to give importance to managing exchange-rate

 risks and assets in the short-term.


Business,Business News,Bangkok Post, 17 December 2015.

 

Good news for Thai economic next year.

 

Hope Mr.Somkid can lead to stimulate all sections of Thai

 

economy not only joint venture but SME and medium size

 

business also.

Sincerely Yours.