BANK of Thailand Governor Veerathai Santiprabhob today adjusted Thailand’s economic growth in 2017 to 3.4% because global economic revival is now clearly evident, Matichon daily newspaper said.
However he warned that other risks are weighing on the economy particularly geopolitical factors and trade policies and these have to be closely watched.
“The geopolitical tension in the Korean peninsular, which is in our region, who knows whether brother Kim (North Korean leader Kim Jong-un) or Trump (US President Donald Trump ) will blink first? It’s a risk to be watched together with international trade policies of key industrialized nations and retaliatory policies by other countries – all this will impact global trade and investment,” he said.
Mr Veerathai, who just attended the third Asean Finance Ministers and Central Bank Governors’ Meeting (AFMGM) in Cebu, the Philippines, also mentioned that Asean countries agreed there should be talks on liberalizing regional economic partnership with China, Korea, Japan, India Australia and New Zealand with this to include financial cooperation.
Regional economy will become stronger if international trade costs are reduced and trade links are strengthened, he added.
Mr Veerathai warned that exchange rate fluctuations will intensify in future through the policies implemented by key economic powers as well as global political moves.
This will impact the exchange rate and the value of assets and for this reason business operators should focus on managing exchange rate risks.
Top: Bank of Thailand governor Veerathai Santiprabhob talking to the Press today. Photo: Matichon