The International Monetary Fund (IMF) projects that Thailand’s economic growth in 2012 will be 5.5 per cent, but warned that significant downside risks still remain due to uncertainties from the global economy and the progress of flood-prevention measures, according to the Bank of Thailand (BoT).
The BoT said in a statement issued on Thursday that the IMF Executive Board on April 27 concluded an Article IV Consultation with Thailand and commented that that the Thai authorities’ policy response to 2011′s floods has propelled the strong recovery.
The IMF said that Thailand’s economic growth is projected at 5.5 and 7.5 per cent in 2012 and 2013, respectively. While the short-term outlook is favourable, significant downside risks remain due to uncertainties related to the global economy and the progress of flood-prevention measures.
The current expansionary fiscal and monetary stances are appropriate, BoT said. However, the authorities should reduce their supportive policy roles as the recovery takes hold and move to a medium-term consolidation path.