Thailand set for new US economic policies

BANGKOK, 7 December 2016 (NNT) - Analysts have forecast that new US economic policies will pose a challenge to major trade partners such as China, India, and South Korea, potentially resulting in cash leaving emerging markets, such as Thailand. 

The outflow of investment has already begun, as the US Federal Reserve has strongly indicated it will raise interest rates at the end of the year. Signs of further rate hikes the following year has resulted in money flowing back into the US currency. 

Money flowing out of Thailand is happening at a smaller rate than neighboring countries, due to confidence in Thailand’s economic fundamentals as well as various government stimulus measures. The government is also expected to implement further stimulus measures next year, while infrastructure development projects in 2017 expected to total 1.4 trillion baht. 

Analysis expect Thailand’s SET composite index to range between 1,400-1,600 points, while the Thai baht is expected to range between 35 - 36.5 baht against the US dollar.

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