Source: Malay Online (17 Sept 2014)

Thailand has to achieve the gross domestic product (GDP) growth of at least 4.5 per cent annually to keep up with other Asean countries, but it is something that it is not expected to achieve this year.

If the GDP is lower than that, it means Thailand is retrograding, Federation of Thai Industries Chairman Supant Mongkolsuthee said.

He said as the average growth rate of Asean countries is at six per cent, Thailand’s growth should not be below 4.5 per cent.

According to the UNCTAD Trade and Development Report 2014, most countries in Southeast Asia should keep growing at around or above five per cent, driven by private consumption and fixed investment, with little or no contribution from net exports.

The global economy is expected to grow between 2.5 and three per cent this year.

UNCTAD has also pointed out that global merchandise trade remains lacklustre with growth only close to two per cent in 2012-2013 and the first few months of 2014.

Thailand still faces obstacles such as low export growth and had only recently installed a new government after the May 22 coup.

Supant said the country’s export this year is expected to grow by two per cent due to low global export growth as many countries are preoccupied with violent conflicts within.

The government should accelerate budget disbursement to boost domestic consumption to mobilise the country’s growth, he added.

He also asked the government to resolve the low prices of agricultural produce as it was one of the factors that had pulled the consumption down as most consumers are also farmers.

“Declining domestic motorcycle sales is also an indicator of the lower purchasing power,” he said.

The motorcycle sales in August dropped 12.42 per cent to 143,235 units compared with the corresponding period last year.