Log in
Lost password
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  News


Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

Thai MOF Revises Up 2012 GDP Growth Forecast To 5.5%

03/26/2012 | 04:57am US/Eastern

-- Thailand's Ministry of Finance raises its 2012 economic growth forecast to 5.5% from 5.0% previously

-- The ministry assumes the benchmark policy interest rate will be at 3.25% vs 3.00% now

(Adds trade, current account forecast in 3th-4th paragraphs, inflation forecast in 5th paragraph, policy rate and baht assumption in 6th-7th paragraphs.)

By Phisanu Phromchanya


Thailand's Ministry of Finance has revised up its 2012 economic growth forecast to 5.5% from 5.0% previously, due mainly to recovering domestic demand and the government's fiscal stimulus measures, the head of the ministry's Fiscal Policy Office said Monday.

Severe flooding in the fourth quarter slashed the country's gross domestic product growth by 3.7 percentage points last year, bringing economic growth rate for the full year to just 0.1%.

While the situation will improve this year, slowing growth in China and lingering sovereign debt problems in the euro zone will likely hurt exports, and demand for machinery parts to rebuild plants damaged by the floods will boost imports, FPO head Somchai Sujjapongse told reporters.

Imports will likely grow faster than exports this year, trimming the country's trade surplus to $7.3 billion from $23.5 billion last year, the ministry's think tank said, adding the current account will likely swing to a deficit of $3.5 billion from a surplus of $11.9 billion in 2011.

Headline inflation will likely edge down to 3.6% from 3.7% in 2011 while core inflation is projected at 2.3%, compared with 2.0%.

In preparing its forecast, the FPO assumed the benchmark policy interest rate will be at 3.25% at the end of the year, implying that it expects a 25-basis-point hike in the one-day repo rate from the current policy rate of 3.00%.

The FPO also assumes the average exchange rate of baht to be at THB31 per dollar in 2012, compared with THB30.5 per dollar in 2011, said Somchai.

-By Phisanu Phromchanya, Dow Jones Newswires; 662-690-4200; phisanu.phromchanya@dowjones.com

React to this article
Latest news
Date Title
10:19p FACEBOOK : CEO and wife to give 99% of shares to couple's foundation
10:19p HUAWEI TECHNOLOGY : signs agreement with Barcelona's future sports theme park
10:18p PG&E6CPREF : BRIEF: Upgrade planned for natural gas lines in Live Oak, Gridley
10:16p SUNWAY BHD : Additional Listing Announcement
10:16p ROX RESOURCES : Results of Rights Issue
10:16p SINGAPORE TELECOMMUNICATIONS : Singtel and Globe help enterprises in the Philippines fight cybercrime
10:15pDJCrude Prices Fall; Larger U.S. Stockpiles Expected
10:12p AIRGAS : Ghasemi: Air Products not interested in bidding for Airgas
10:10p MINERALS COUNCIL OF AUSTRALIA : Mining exports continue to support gdp growth
10:10p SAIC MOTOR : highlights Dubai Motor Show 2015
Latest news
Hot News 
UBS : House View 2016 & Beyond: A world in transition
Giga-tronics Signs Software Agreement With Lockheed Martin
MINCO : 2015 Q3 Interim Financials
ISG : Expects Loss For UK Construction Arm, Other Units In Line
PLUTUS POWERGEN : Placing of shares in Plutus Powergen plc
Most Read News
08:37p IFS Securities Terminates Research Coverage on Net Element, Inc.
08:33p FIRST MID ILLINOIS BANCSHARES : completes acquisition of Illiana Insurance Agency
08:40p SURVIVING VOICES : Enduring Stories Of Hope
08:44p BANK INDONESIA : ​November Inflation Controlled
06:23p NATIONAL FARMERS' FEDERATION OF AUSTRALIA : Opportunity for coastal shipping reform sails away
Most recommended articles
10:15pDJCrude Prices Fall; Larger U.S. Stockpiles Expected
09:59pDJTop Hong Kong Regulator Peter Pang Referred Son for J.P. Morgan Internship
09:29p CVC Capital nears a $2.34 billion deal for UK's RAC - Sky News
09:07pDJYahoo Board to Weigh Potential Sale of Internet Business -- 2nd Update
09:05pDJMetro Pacific Secures PHP16.5 Billion Loans for Projects