Thailand's Fiscal Policy Office has revised its economic growth estimate for this year upward to 5.6 percent from 5 percent projected earlier, citing improved local consumption and private spending, the Thai News Agency reported Thursday.
FPO's Director-General Pannee Sathavarodom said that Thailand's economy this year is expected to expand 5.6 percent against 4.8 percent last year and 5 percent estimated earlier.
The economy is likely to grow in a more balanced manner since local consumption and private spending have picked up, the FPO said.
It is projected that private consumption this year will grow 4 percent -- a significant compared with 1.4 percent in 2007.
Private investment is anticipated to surge 9.7 percent this year from last year's very low level of 0.5 percent.
She said the government's efforts to accelerate budget disbursements under its plan to run a budget deficit of 1.8 percent of the gross domestic product (GDP) in fiscal 2008 and a deficit 2.5 percent of GDP in fiscal 2009 would increase the local spending and encourage the private investment.
She said the country's export growth is forecast to decline to 6.9 percent compared with 7.1 percent in 2007 since the global economy had experienced risks from the economic slowdown in the United States.
The imports and services are projected to increase thanks to the recovery of the local demand.
Thailand's inflation rate is likely to edge up to 4.5 percent since global crude and commodity prices are expected to continue growing.
The current account balance surplus will fall this year due to the expected slowdown in exports, she said, adding that the value of imports is expected to accelerate in tandem with improved local spending and the baht is likely to hover around 31.5 to the dollar.
Source: Xinhua
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