BANGKOK, 3 May 2012 – A top economic guru has forecasted that Thai economy will end up expanding healthily this year, as a result of the recovery in the flood-hit industry.
Mr. Virabongsa Ramangkura, Chairman of the Strategic Committee for Reconstruction and Future Development, said that Thai economy has shown evident signs of continued recovery in the second quarter, a trend he believes will go on until the end of this year.
He stated that local economic recovery has started since the first quarter of 2012 after the manufacturing sector resumed operations that were hit hard by the worst flood crisis in decades.
Mr. Virabongsa added that such a trend, backed by the government’s higher-than-expected revenue collection, led him to predict that Thailand’s GDP will stand between 6 and 6.5 percent this year.
Other factors, which Mr. Virabongsa has considered in supporting his forecast, include the special 120-billion-baht post-flood rehabilitation budget and the allocation of 350 billion baht for the country’s flood prevention systems that will soon be circulating in the local economy.
He went on to say that reports from the Board of Investment (BOI) showed that there has recently been a significant rise in the investment incentive applications.
However, he cautioned that the economic expansion during the second half of this year may be hindered by a shortage of labor, after Myanmar has opened its gate to the international community and Myanmar workers in Thailand will likely return home soon.