SCB predicts 8.5% economic growth

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BANGKOK, 3 May 2012  – The Siam Commercial Bank Economic Intelligence Center (SCB EIC) has predicted an 8.5% growth for the economy in 2012 due to the industrial sector’s speedy recovery. 

SCB’s Chief Economist Sutapa Amornvivat has revealed that Thailand’s economy in 2012 may see a growth of up to 8.5% given investor confidence, which has brought the country’s production back on its feet sooner than expected. This could be seen from the Manufacturing Production Index and the increased production capacity during the beginning of the year.

The quick post-flood recovery of the industrial sector and growth in domestic spending, especially in investment have prompted the center to revise its Q2 economic growth up to 5.6-5.8%.

Furthermore, the center has predicted that the private sector’s investment throughout the year will see a 12% increase, especially in production. Meanwhile, the public sector’s investment will see an increase during the second half of the year.

Thai entrepreneurs have been advised to be cautious as the 40% minimum wage hike has sent the country’s overall production cost up by 3.3% and inflation by 0.7%. At the same time, the higher energy price might also force inflation up to 3.5-4%.