THE recovery of household purchasing power will help to shore up economic growth this year to reach the 3.2% growth target, Thai PBS quoted the National News Bureau of Thailand (NNT) as saying today.
According to NNT, Bank of Ayudhya’s chief economist Somprawin Manprasert said that the purchasing power of Thai households is rebounding in all regions of the country, recording an increase of about 8,000-12,000 baht per household. Supporting factors include the expanding revenue from tourism, improving agricultural prices and the reduction of debts incurred by the previous government’s first-car program.
Combined with the government’s acceleration of infrastructure investment and assistance of low-income earners, the bank expects the Thai economy to expand by 3.2% in 2016 and 3.3% in 2017.
The policy interest rate is likely to remain unchanged until the end of next year while the value of the Thai baht this year is estimated at 35.2 baht against the US dollar on average.
On the downside, Mr Somprawin said Thai exports have been struggling with sluggish recovery, with a contraction of 2% forecast for the entire year.
Furthermore, the Thai economy is also threatened by volatility caused by economic uncertainties around the world, particularly China, as well as concerns over the political transition at home.
Meanwhile Fiscal Policy Office director-general Kritsada Jinavijarana said today that net government revenue for fiscal 2016 (from October 2015 till September 2016) was 2,393,500 million baht. This was 63,500 million baht or 2.7% and higher estimated total of 2,330,000 million baht.
It was also and 8.1% higher tha fiscal 2015 revenue because the auction of 900 and 1800 MHz (4G) mobile licenses brought in 56,273 million baht, Thai News Agency said today.
Top: Terminal 21 shopping center attracted a good crowd recently. Photo: Dushan Hanuska (CC-BY-SA-2.0)