Global gains set to buoy Thai growth

Global gains set to buoy Thai growth

Trade partners' rising fortunes to aid exports

A container vessel docks at the port in Klong Toey, Bangkok. The private sector expects exports to rise this year, boosted mainly by the global recovery. KOSOL NAKACHOL
A container vessel docks at the port in Klong Toey, Bangkok. The private sector expects exports to rise this year, boosted mainly by the global recovery. KOSOL NAKACHOL

The private sector sees global economic momentum lending further support to Thai growth this year, says the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB).

But uncontrollable risks and uncertainties remain, particularly in the light of US President Donald Trump's economic and political policies, with the private sector keeping its key economic indicators unchanged this year.

The JSCCIB still forecasts 2017 export growth of 1-3%, which is an upward revision from 0-2% seen in late 2016, said Chen Namchaisiri, chairman of the Federation of Thai Industries.

"There are signs showing that the global economy is continuing on a path of recovery, and the economies of Thailand's major trade partners such as the US, China, Japan and Europe are better," said Mr Chen.

The growing economies of Thailand's trade partners are expected to lend support to Thai exports and help them surpass the previous growth forecast, he said.

In addition, the JSCCIB suggested the government start bilateral trade negotiations with countries with strong economic potential such as England, Pakistan, Iran and Bangladesh.

"Countries like Bangladesh have emerged as major trade partners with rising populations and demand that could help increase Thai exports in the future," said Isara Vongkusolkit, chairman of the Thai Chamber of Commerce.

But the volatility of oil prices, which are in a rising trend, could mean higher costs, while the economic policies of Mr Trump pose risks that could weigh on the Thai economy and prevent it from rising substantially.

As a result, the JSCCIB has kept its forecast for Thai economic growth at 3.5-4.0%.

The forecast is based on the assumption that government spending will play a major role in stimulating the economy, creating jobs and increasing purchasing power, said Mr Chen.

Meanwhile, the JSCCIB, other Thai private organisations and major firms have joined a government-led trip to Myanmar to boost economic cooperation.

He said the two states have signed up to 16 memorandums of understanding (MoUs) covering four major areas.

The first was an MoU on cooperation to develop small and medium-sized enterprises, including training and inspiring businesses to develop new innovations to produce higher-value products.

The second was an MoU to support and develop industries in Myanmar, covering manufacturing, sugar factories, energy and infrastructure development. The third area is joint work to develop human capital and the fourth is cooperation in technology.

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