Federation of Thai Industries to adjust its GDP projection after Q2

0
475

BANGKOK, 26 May 2015, The Federation of Thai Industries is to adjust its projection of this year’s gross domestic product (GDP) after the second quarter. It may also revise down the domestic auto sale forecast, as commercial banks have become more strict with their lending.

President of the FTI Suphan Mongkholsuthee said his agency has currently estimated that the economy will grow by 3.5 percent; however, it would likely adjust that figure at the end of the second quarter.

According to him, the major driving forces at the moment are the government’s stimulus measures, its plan to accelerate budget disbursement, and its efforts in dealing with low agro- product prices. The latter also helps increasing public purchasing power as well as boosting domestic spending.

Another positive factor is the fact that the Thai Credit Guarantee Corporation (TGC) has increased the ceiling limit on risk insurance from 18 percent to 30 percent. The move came after various financial institutes became more strict with lending to small- and medium-enterprises (SMEs).

The TGC also asked the government to consider giving the SME sector a boost by injecting another 10 billion baht into the industry.