The Thai economy can grow to its full potential of 5% next year, said Bank of Thailand governor Prasarn Trairatvorakul.
"The stimulus can be investment. We can speed up related procedures so investors can get privileges approved and break ground sooner. We can also accelerate budget disbursements," says Mr Prasarn. (Photo Thanarak Khoonton)
Fundamentally, the economy has potential to expand in a range between 4.5% and 5%, he said at the Thailand Focus 2014 forum on Wednesday.
"We can resume growth at that rate next year. By July 2015, the Thai economy will likely grow by 5%. If the situation is normal and all sides cooperate, [the economy] can grow to its potential," Mr Prasarn said.
Despite the strong fundamentals, the central bank kept its forecast for gross domestic product expansion at 1.5% for this year.
To achieve 2% growth this year, some stimulus is needed but Mr Prasarn believes it should not be a burden on the government budget.
"The stimulus can be investment. We can speed up related procedures so investors get privileges approved and break ground sooner. We can also accelerate budget disbursements," he said.
"While household debts remain high at 83% of GDP, they have been declining since mid-2014. Besides, it appears high due to the low GDP growth base. In any case, the central bank will closely monitor the changes.
"Other factors to watch out for this year are the US Federal Reserve's decision on quantitative easing measures and how it will affect liquidity and capital flows, which are balanced now," he said.
The Commerce Ministry reported on Wednesday July exports dropped 0.8% year-on-year to $18.89 billion due to lower shipments of gold, fuel and farm products.
Duangkamol Jiambut, deputy director-general of International Trade Promotion Department, said imports during the month were $19.9 billion, down 2.86% from the same month in 2013. Therefore, the country recorded a trade deficit of $1.1 billion baht.
For the first seven months of this year, Thailand shipped a total of $131.6 billion, down 0.42% from the same period last year. Imports during the period were $132.466 billion, down 12.49%. As a result, trade deficit during the month was $865.5 million.