TDRI: Second economic stimulus program will boost economy

TDRI President Nipon Poapongsakorn said the economy could grow 0.8% in 2009 if the government accelerated its budget disbursements totaling more than 100 billion baht before the end of fiscal 2009.

About 80% has already been spent by the government for this fiscal year which ends this September 30, according to Mr. Nipon.

He said that if the government applies the investment funds from the second economic stimulus program, which runs from this year to 2012, the national economy in 2010 could grow from the projected 1.4-2%.

Somchai Jitsuchon, head of TDRI’s overall economic development and income distribution activities, said if the government continues its financial packages to help low-income earners with free public transport, subsidies for electricity, water and cooking gas and implements the second economic stimulus program, the economy will begin recovery later this year.

Mr. Somchai predicts that Asian economies, including that of Thailand, will recover before the global economy, which he sees taking at least two to three years before it could improve.