The big contradiction : GDP will increase ? And interest rates will go down ?

The National Economic and Social Development Board (NESBD) yesterday revised upward its growth forecast for 2008 on expectations of a surge in exports and private investment.The economy is expected to grow between 4.5% and 5.5% this year, higher than the agency’s last estimate in December of 4-5%, said Ampon Kittiampon, the NESDB secretary general.

Meanwhile… the same day…

The Bank of Thailand is prepared to further cut interest rates to help spur growth, according to deputy governor Atchana Waiquamdee.

The central bank’s Monetary Policy Committee is widely expected to cut interest rates by a quarter-point when it meets tomorrow. The MPC’s one-day repurchase rate currently stands at 3.25%, or a quarter-point higher than US official short-term interest rates. (Bangkok Post)

One of them… is wrong. 😉 Or one of them is hidding something…

I think I know the answer : growth of GDP in 2007 declined compare to 2006 (read here). And the worst is to come with a… global slowdown…

And what about inflation ? And the problem of the appreciation of THB ? What a conundrum !

The trap door is closing.

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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.

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