Stimulus measures 'start to bear fruit'

Stimulus measures 'start to bear fruit'

A ship unloads goods at a Samut Prakan port on Sept 23, 2015. Exports must be at least $18.9 billion a month for the rest of the year if the 3% economic growth target is to be achieved, according to the Finance Ministry. (Photo by Pattarapong Chatpattarasill)
A ship unloads goods at a Samut Prakan port on Sept 23, 2015. Exports must be at least $18.9 billion a month for the rest of the year if the 3% economic growth target is to be achieved, according to the Finance Ministry. (Photo by Pattarapong Chatpattarasill)

The Finance Ministry is optimistic economic stimulus measures will help shore up growth this year despite downward revisions by two agencies last week.

The Bank of Thailand and the Asian Development Bank late last week revised down their 2015 gross domestic growth forecasts to 2.7% from 3% earlier.

But Krisada Chinavicharana, director of the ministry's Fiscal Policy Office, said the ministry would wait until next month to decide whether its 3% economic growth projection should be revised, on Tuesday.

"To meet the forecast, gross domestic product will have to expand 3% in the second half from 2.9% in the first," he said.

Exports must also be $18.9 billion a month for the rest of the year if they are to meet the target of a 4% contraction, he said.

"We'll revise the GDP forecast next month after obtaining more data. For 2-3 weeks, several stimulus measures have been implemented.

"For instance, 20 billion baht has already been injected into the provinces through village funds, out of a total budget of 60 billion baht, a relatively speedy disbursement," he said.

However, a central banker said last week the economic stimulus packages would bolster growth by up to 0.1 percentage point.

The ministry foresaw the baht at 34.30 to the US dollar on average this year and has confidence in the central bank's ability to maintain its stability.

On tourism, Mr Krisada said his office was confident the industry would achieve the 1.4-trillion-baht revenue target after booking 1 trillion to date.

Arrivals have rebounded strongly following the Aug 17 Erawan shrine bombings, he said, rising 28.5% year-on-year on Sept 17 compared to 32.9% during Aug 1-17.

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