Bank of Thailand Governor: Thailand’s Economy Remains Sound amid Global Uncertainties

Thailand’s 2011 economy is expected to grow 4% to 5% despite a series of global economic crisis, Bank of Thailand Governor Prasarn Trairatvorakul told an economic forum recently.

The Thai economy is forecast to expand at around 4%-5% driven by exports, investment and domestic consumption, he told the seminar entitled “Thailand’s Investment Environment: Looking Forward.”

Southeast Asia’s third largest economy posted a 7.8% growth in 2010 following a 2.3% contraction in 2009 after the collapse of Lehman Brothers sent shockwaves throughout the world.

The Thai Central Bank Governor urged the government to increase investment in infrastructure projects, restructure the tax structure to narrow the social gap, and maintain fiscal sustainability. He also said that the private sector should enhance their competitiveness by investing in labor skill improvements, develop the supply chain network and increase research and development capabilities.

Other panelists encouraged Thailand, ranked by the World Bank as the 19th most suitable place for doing business in the world, to liberalize sectors including electronics, creative economy and services, as well as to amend some legislations including the Foreign Business Act in a move to attract foreign investors.