World Bank expects European crisis to drag on for 5 five years

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Bangkok, July 19 2012  – World Bank is anticipating Thai economic growth to be 4.5 percent, even though the US Central Bank, or FED, is not issuing the Quantitative Easing 3 measure or QE3, but admits that the Euro-zone debt crisis could drag on for another 5 years.

In the seminar of “Talk with the gurus over Thai economy” organized by AEC information center, Department of Trade Negotiations, and the Commerce Ministry, Ms. Kirida Bhaopichitr, the Senior Economist at the East Asia and Pacific Poverty Reduction and Economic Management Unit of the World Bank said Thai economy in the latter half of 2012 will encounter a higher expansion rate than it did in the first six months regardless of the fact that the FED will not issue QE3 measure to help boost the US and the European economies.

In addition, she expects the Thai economy to expand by 4.5 percent and Thai export will increase by 10.4 percent. However, Thailand will see a 5-percent economic growth next year thanks to the fact that production capacity of the Thai industries has fully recovered, while world economy will increase 3 percent next year.

She further suggested that the government and the private sectors should have a strategy to cushion the situation whether or not the European economic downturn affects Thailand’s financial status, because the current crisis is far worse than the crisis Thailand had in 1997.