WB to raise 2012 GDP growth

WB to raise 2012 GDP growth

The World Bank will issue its 2012 annual report in mid-December and there is a possibility it will increase its 2012 growth projection for Thailand, the bank’s senior economist Kirida Paopichit said on Wednesday.

The gross domestic product growth forecast is likely to be raised to 4.7%, from the previous projection of 4.5%, due to a better than earlier expected expansion in domestic consumption, she said.

Ms Kirida projected economic expansion for 2013 of 5% on the back of expected export growth of 10-12%.

The country’s economic fundamentals have been improving after being severely affected by the great flood late last year, she added.

The senior economist said there were good signs in the export sector, in addition to the increase in investment by the government, particularly in water resources and flood management projects.

Inflation next year is expected to stand at 3% as the prices of fuel and consumer goods would not sharply increase, she said.

The risk factors that could derail economic growth included the persistent eurozone debt crisis and domestic political problems, she added.

If the planned anti-government rally by the Pitak Siam group at the Royal Plaza on Nov 24 is limited to the rally site, not prolonged and there is no protest in industrial zones, its impact would be minimal, Ms Kirida said.

However, the rally could affect the confidence of investors, especially new direct investors who might decide to delay investment plans, she said.

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