Growth projection raised on lower oil prices
The National Economic and Social Development Board (NESDB) has raised its economic growth estimate for this year to 5.2-5.7% upon easing concerns over higher oil prices.
NESDB Secretary-General Amphon Kitti-amphon said the economy is expected to turn around this year since inflationary pressure has begun to ease in response to the projected decline in oil prices in the third and fourth quarters.
In light of these developments, the think-tank revised its economic growth projection for this year upward to 5.2-5.7% from 4.5-5.5% and the estimated inflation rate downward to 5.3-5.8% from 6.5-7% earlier.
However, he conceded that the economy is still experiencing risks from the sub-prime lending crisis in the US, the outflow of foreign funds due to adjustments of foreign investment portfolios, a reduction in consumer confidence and within the business community, the significant cost of living, and political uncertainties.
Amphon said that during the second quarter, the economy grew 5.3%, down from 6.1% in the first quarter. But the economy in the first half of the year grew 5.7% compared with 4.2% in the corresponding period the year before since product prices in the farm sectors had increased in almost all categories, although the industrial and service sectors expanded at a slower pace.
He said the NESDB saw a need for the government: to accelerate budget disbursements; to closely monitor the implementation of its six relief measures closely for a period of six months; to improve the stability of farm product prices; to step up efforts to restore consumer and investor confidence; and; to enhance export competitiveness. - Thai News Agency (TNA), Agencies.
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