04.07.09 New economic stimulus package to boost economy in 2010-2012
Source: TNA
BANGKOK, July 4 (TNA) – The government’s second phase economic
stimulus measures under “Thai Khem Khang” or “Stronger Thai 2012”
project will help boost the country’s annual economic growth of 1-2.5
per cent during 2010-2012, according to a leading securities analyst.
However, implementation of the measures will raise the public debt
to 60 per cent of the gross domestic product (GDP) in 2012, according
to Sukit Udomsiri, first executive vice president of Siam City Research
Institute, at a special panel discussion on the economic and financial
situation
He predicted the planned issuance of the government bonds to absorb
the market liquidity would not adversely affect the overall liquidity
in the system.
But liquidity is quite likely to tighten next year as the demand for
investment funds by the private sector is set to increase as a result
of recover in the global economy.
Under the circumstances, he said, the interest rate might to increase next year.
Mr. Sukit believed the Thai economy next year would not be worse
than this year as the global economy is forecast to is forecast to
enjoy the V-shape turnaround in 2011.
Still, he warned of the renewed rise in inflation in the coming
August-October period, since global oil prices are expected to increase
further. (TNA)
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