BANGKOK, Nov 18 – The Thai government’s two trillion baht infrastructure development programme will help contribute to GDP growth next year, Minister of Finance Kittiratt Na-Ranong said today.
Speaking at an Economic Reporters Association seminar on Thailand’s economic direction next year, Mr Kittiratt admitted that the country’s grim economic growth performance this year is closely linked to many negative external factors. Through the year, the country has faced a set of disappointments ranging from lower-than-projected GDP and revenue in the past three quarters as well as reduced exports and investment.
The minister, however, said that the exchange rate is stable and the current tourism high season will help prevent further decline.
The government’s Bt2 trillion infrastructure development programme and the Bt350 billion water management project will help boost the Thai economy next year. The seven-year infrastructure programme alone will help increase the country’s GDP from Bt12 trillion baht to Bt150 trillion, he said.
Mr Kittiratt affirmed that the government would try not to let public debt exceed 50 per cent and that it will carry on with the planned disbursement process, and that he would welcome private sector participation for improved transparency.
GDP is expected to grow 4.5 per cent on a continuing basis until 2020 due to the recovery of the global economy, he said.
Deputy Prime Minister/Commerce Minister Niwatthamrong Boonsongpaisan, meanwhile, admitted that the Thai economy this year expanded only for one per cent due to sluggish growth of global economy. However, the global economy is expected to grow up to 3.5 per cent from 2.9 per cent as previously expected. Exports will also increase by 5-7 per cent.
Following the upcoming consideration of the government’s Bt2 trillion infrastructure development bill, Transport Minister Chatchart Sittiphan said his ministry is ready to clarify to the public and Parliament the project’s details. He also said most of the projects are prepared and ready to commence.
