Bank of Thailand raises growth forecast
Afp, Bangkok
Thailand's economy is expected to grow 4.25-4.75 percent this year, the Bank of Thailand projected Friday, revising upward its latest growth forecast but also predicting an uptick in inflation. "Despite the effects of high oil prices, domestic consumer spending, expanding investment and clear growth in exports support the growth," Suchada Kirakul, the bank's senior director in the domestic economy department said. Soaring world oil prices will push up inflation to 4.5-5.0 percent in 2005, the bank projected, marking a sharp increase from last year's rate of 2.75 percent. The previous forecast issued three months ago called for growth of 3.50-4.50 percent. Despite the increased forecasts, which are updated quarterly, the latest revision was still down sharply from the original projection of 5.5-6.5 percent growth for 2005.
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