Thai Economy faces lower growth

BoT sees higher baht, hiked funding costs: The Thai economy will face challenges from low global growth, an appreciating currency and higher funding costs in the years ahead, according to economists at the Bank of Thailand. Tarisa Watanagase, the governor of the Bank of Thailand, said the global recovery remained fragile, as seen through relatively high unemployment. But gains in consumption figures in the US and Europe have created optimism about the global recovery. “The timely disbursement of public funds and a recovery of private investment will help to drive economic growth in the short term,” she said. The baht will be more volatile with capital inflows but the central bank sees no need to impose new measures to address speculation, she said.But timely fiscal and monetary expansion in the industrialised economies helped lessen the overall impact. (Bangkok Post)