InfoQuest (November 17, 2020) - According to Thai finance minister Arkhom Termpittayapaisith, Thailand may see an economic decline in 2020 smaller than the 7.7 percent contraction earlier forecasted by the Ministry of Finance, and an economic growth of 4 percent in 2021.
A few days ago, the Office of Thailand's Institute of Economic and Social Development announced a 6.4 percent fall in Thailand's GDP of Q3 2020, which was slightly better than that of Q2, and further predicted a more positive trend in Q4.
The Financial and Economic Office updated the 2020 GDP forecast; the decline forecast was less than 7.7 percent, with a 4 percent growth in 2021.
"We note that public spending in Q3 was 6.3 percent higher than that of previous quarter, but decreased 0.6 percent year to year; instead, government investment rose 18 percent," Arkhom said.
Arkhom has discussed the firm baht exchange rate with the Bank of Thailand that offered a number of measures for regulations.
The influx of external funds shall be managed from many aspects; we should guard against speculation for positive securities market while combining financial instruments of the Bank of Thailand and financial measures of the Ministry of Finance, according to Arkhom.
"We should carefully consider the influx of external funds due to their various sources, and we should know what to do, because US dollars inflows. Thailand's large-scale investment projects, especially railway and high-speed rail projects may wait for a long time before imported products are necessary. We need to know the loan repayment deadline, and paying in US dollars can mitigate capital influx and firm exchange rate," Arkhom added.
Source: InfoQuest, by Koloreu /Sasithorn, translated by Xinhua Silk Road
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