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Thai economy “already” in
recession, says finance minister
Finance Minister Korn Jatikavanich on Friday conceded that the Thai economy
is already in recession because the country’ gross domestic product (GDP)
had experienced a negative growth for two successive quarters.
However, Korn believes the economy will not remain in deep recession since
the GDP is unlikely to shrink more than 10 percent for this year. He also
brushed aside concerns that the pandemic of H1N1 influenza in many countries
worldwide, including Thailand, would affect the economy as the Ministry of
Public Health is able to cope with the situation efficiently.
Regarding the private-sector call for the Bank of Thailand (BoT) to closely
supervise the baht movement to ensure it does not strengthen too much, he
said the new law authorizes the central bank to work independently of the
Finance Ministry.
So, it is a matter of the Bank of Thailand’s discretion to supervise the
Thai currency, he said, adding that he personally believes that the baht
value should be lower than the current level to help boost exports.
Previously, he said, the BoT had explained that the weakening of the baht
could not help reinforce exports.
However, the central bank suggested that improved export products be
developed in terms of quality to boost competitiveness in the world market
in the long run. (TNA)
Thai Chamber urges central bank to move baht closer to other currencies
The Bank of Thailand (BoT) should closely supervise the baht
to ensure it does not appreciate considerably and that it moves in the same
direction as other currencies in the region, according to the Thai Chamber of
Commerce (TCC).
TCC Vice-Chairman Pongsak Assakul said the baht had strengthened against
currencies of neighboring countries by 1.8 percent since early this year.
The currencies of most neighbors had weakened or strengthened marginally against
the baht. For instance, the Malaysian ringgit had depreciated 2.8 percent and
the Singapore dollar had weakened 0.9 percent.
The baht index showed the currency had appreciated 2.71 percent against the
currencies of 12 of Thailand’s trading partners. This means that Thai exports
lost competitiveness in terms of prices by the same percentages.
Nonetheless, should the baht weaken by one per US dollar, exports would grow
further and the economy would expand by 0.3 percent, leading to an increase in
the number of new jobs by 100,000.
“Should the baht management be stable, it will boost investor confidence the
baht won’t be attacked because it is closely supervised. The matter will be
raised for consideration at the Joint Private-Sector Committee,” Pongsak said.
(TNA)
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