Thailand’s economy this year will envisage increased volatility, an economist said yesterday.
Sakon Waranyu-Wattana, the dean of the Faculty of Economics at Thammasat University, attributed the increased volatility to the policy changes earlier announced by the new US President after he takes office.
He then advised that the government focuses less on stimulating short-term consumer spending such as with its ‘Shop for the Country’ campaign and its provision of low interest loans.
He said the government should better paying attention to preparing itself to cope with the expected rapid change in global circumstances.
But he said the deciding factor will be ensuring greater confidence and stability for SMEs (small to medium enterprises) which has seen a drop in investments.
Mr Sakon stated that the fundamentals of the Thai economy are strong and has potential for further growth.
He advised the government to make use of the midyear budget to promote increased investments to the provinces.
This will allow the economy to grow by at least 3.2 � 3.5%, he said.
Source: Thai Public Broadcasting Service (Thai PBS)