Thai central bank raises 2007 growth forecast to 4-5 percent from 3.8-4.8 pct |
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Fri, 27 Jul 2007 12:03
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BANGKOK (Thomson Financial) - The Bank of Thailand on Friday raised its economic growth forecast for this year, citing an improvement in business confidence and growing hopes for a recovery in consumer spending.The central bank said it now expects the economy to grow 4.0-5.0 percent in 2007, up from its earlier estimate of 3.8-4.8 percent.'There were some indicators showing an economic recovery in the first half as consumer and investor confidence improved faster than we had expected,' said Suchada Kirakul, an assistant central bank governor.The economy is also expected to grow 4.5-6.0 percent in 2008, up from the 4.3-5.8 percent range seen earlier, she said.Confidence has improved due to easing political uncertainty as Thailand heads toward a referendum on a new constitution in August and general elections later this year, she said.Her comments, however, contrasted with Thursday's survey on business confidence, which showed sentiment in June sharply down to 80.9 from 86.1 in May amid worries over the strong baht and post-coup political uncertainty.The central bank also said the economy would likely pick up later this year on hopes that falling interest rates would spur consumer spending.The central bank last week lowered its key interest rate by 25 basis points to 3.25 percent, with investors expecting more rate cuts aimed at boosting consumer spending and curbing the baht's rise against the dollar.The bank said inflation would remain at 1.5-2.5 percent in 2007.afp/jgzr/jgCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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