K-Research: 2014 GDP to grow 2.3%

Economic growth is forecast to grow by 2.3% this year, up from the earlier projection of 1.8%, because of the economic policies of the National Council for Peace and Order, according to Kasikorn Research Centre (K-Research).

K-Research’s deputy managing director Pimolwan Mahajchariyawong said the NCPO’s economic policies would help pushed GDP growth up by 1-1.5%.

Those policies are the payment of overdue money to rice farmers who pledged their grain with the previous government; the assistance plan to help farmers reduce costs of production; the approval of projects seeking supports from the Board of Investment; the acceleration of 2014 fiscal budget spending; and the preparation of the 2015 fiscal budget.

However, the centre predicted export growth this year would be only 3%, instead of 5% expected earlier, because there was no clear sign of export recovery over the past five months. Thai farm products suh as rubber, shrimp and seafood ptroducts would continue to suffer an export contraction.

The research agency expected a rise in the crude oil price due because of worries about a possible new war in Iraq would increase inflation and transportation cost. The impact from this factor would cost around 0.6% of GDP growth, said Ms Pimolwan.

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