Thailand s central bank and government must work together PM says

BANGKOK - Thailands government will push for 3.5% economic growth this year and will seek to work closer with the central bank to support small businesses, Prime Minister Paetongtarn Shinawatra said on Tuesday.

Commercial banks are profitable but lending to small businesses remains low, Paetongtarn said, adding that boosting credit access for small and medium enterprises would help the economy.

The government would hold discussions with the central bank to address the issue, she said.

Paetongtarns comments come after Thailands fourth quarter gross domestic product growth missed forecasts, expanding 3.2%.

The figure was short of the 3.9% growth expected in a Reuters poll but was still the strongest annual rate in nine quarters.

The economy grew in almost all dimensions in the fourth quarter, but private investment contracted, Paetongtarn said, adding more investment was being encouraged.

Southeast Asias second-largest economy has lagged regional peers as it struggles under high household debt and borrowing costs, and sluggish demand from China, which is also a key tourism market.

The governments (growth) forecast is 3.0%, we are pushing to 3.5%, she said. We can reach that goal and in the remaining months we will push. REUTERS

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