ADB raises Thailand’s GDP growth projection

BANGKOK, July 21  – Thailand’s gross domestic product (GDP) is expected to grow 5.5 per cent this year, instead of the 4 per cent as forecast earlier, given the higher-than-expected economic expansion in the first quarter, according to the Asian Development Bank (ADB).

Dr Srinivas Madhur, Director of the ADB Office of Regional Economic Integration, said economies of the countries in East Asia, including Thailand, are in the V-shape recovery path.

China, Hong Kong, Taiwan, and South Korea are likely to enjoy economic growth of 8.1 per cent this year, higher than the 7.7 per cent expected earlier.

The strong recovery of emerging East Asian economies signaled it is time for these countries to review their monetary and fiscal policies to stimulate economies.

He advised East Asian countries begin to consider lifting the monetary policy first and the fiscal policy later to ensure an equilibrium in their economic growth.

They should allow currency exchange and interest rates to increase simultaneously if they wanted to see the economy grow in a balanced
manner.

How soon economic stimulus measures should be lifted depends on the degree of economic recovery of each country, he said.

“Thailand, Korea, Malaysia, Singapore and Taipei have begun raising the policy interest rate and are expected to increase the rate further. China should let the currency exchange rate appreciate gradually and slow the loan growth simultaneously while Hong Kong, Indonesia, the Philippines and Vietnam should begin lifting the economic stimulus measures,” he said.

( By: MCOT online news)