Somkid: Delay forming govt depressing GDP growth

Somkid: Delay forming govt depressing GDP growth

Deputy Prime Minister Somkid Jatusripitak opens the Saha Group Fair at the Bangkok International Trade and Exhibition Centre in Bang Na district on Thursday. (Photo by Somchai Poomlard)
Deputy Prime Minister Somkid Jatusripitak opens the Saha Group Fair at the Bangkok International Trade and Exhibition Centre in Bang Na district on Thursday. (Photo by Somchai Poomlard)

The delay in the formation of the new government caused the Bank of Thailand to lower its 2019 economic growth forecast from 3.8% to 3.3%, Deputy Prime Minister Somkid Jatusripitak said on Thursday.

He was confident that GDP growth would pick up again once the new cabinet was in place.

Mr Somkid was speaking when opening the Saha Group Fair at the Bangkok International Trade and Exhibition Centre in Bang Na district.

"It (the growth rate revision) is expected because ... the new government has not been officially formed. Besides, the trade war between China and the United States affects the world economy and thus slows down the Thai economy," Mr Somkid said.

"But I believe that from now on the Thai economy will gradually pick up because the new cabinet is about to take office and proceed with policies."

He said the government would speed up the disbursement of budgets for mega infrastructure projects and that would raise the economic growth rate above the estimation.

Asked if the coalition government would have stability problems because it relied on so many political parties, Mr Somkid said he did not expect such a problem, because all the parties wanted to develop the nation.


Do you like the content of this article?
COMMENT (9)

US economy purged 17m jobs amid pandemic

WASHINGTON: US unemployment is rising at a jarring rate, with data Thursday showing 17 million have lost their jobs since mid-March, as officials scramble to apply a tourniquet to stem the damage from the coronavirus pandemic.

9 Apr 2020

World faces new 'Great Depression' as virus toll mounts

BRUSSELS: World powers scrambled on Thursday to build a global response to the human tragedy and once-in-a-century economic catastrophe caused by the coronavirus epidemic, as death tolls in the US and Europe soared higher.

9 Apr 2020

Registration for free mobile internet starts Friday

The telecom regulator has given more details and tips on registering for 30-day free mobile internet and broadband speed upgrade ahead of the registration on Friday.

9 Apr 2020