US side-step from ‘fiscal cliff’ a plus for Thailand

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BANGKOK, Jan 2 – The last-minute U.S. deal over tax hikes and massive spending cuts to avert a “fiscal cliff” will be a blessing to Thailand both directly and indirectly, the  Bangkok-based Kasikorn Research Centre predicted today.

The ongoing momentum of US economic expansion, augmented by the trend of China’s improving economy, will boost Thailand’s exports – the most vital mechanism in revitalising Thailand’s economy this year.

The research centre predicted the country’s export growth this year at 10-15 per cent and economic expansion at 5 per cent.

The Kasikorn centre said the US move will indirectly reflect a stabilised adjustment of the US currency which will alleviate global currency fluctuation and consequently reduce Thai entrepreneurs’ expenses for currency hedging.