Phatra executive points to 'at risk' sectors
Three sectors of the economy are expected to face a particularly difficult time from the global economic volatility expected to hit next year, according to a leading securities executive.
The agricultural and export sectors, along with small- and medium-size enterprises (SMEs) in general, would be areas of the economy susceptible to a downturn, according to Supavud Saicheua, president of Phatra Securities.
Speaking at a seminar called, 'Global Financial Crisis – Thailand Stability Crisis', Supavud said the economy was only likely to grow by 3.3% next year, while growth in the export sector would ease from 19% to just 7%. This would see revenue earned from exports drop significantly, he suggested. However, he said that falling oil prices should help to boost consumer purchasing power, perhaps resulting in an increase of about 400-500 billion baht in spending, he said. This would help stimulate the economy indirectly and ensure a trade surplus is posted.
He said that prices of agricultural products, particularly rice, had dropped sharply. The price of rice had fallen from US$1,000 per ton to just $600 per ton.
The SME business sector would experience problems with debt repayment and a shortage of liquidity, he said. As for the export sector, some manufacturing plants would be shut down, resulting in a significant number of job losses.
In addition, he said, more trade barriers would be imposed, particularly by the US, since it wants to reduce imports to help ease the current trade balance disparity. - Thai News Agency (TNA).
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