##te and improve their tools of trade in order to produce more and newer goods in the future. when the economy enters a long slump, these improvements are foregone and future growth potential is diminished, a situation known as hysteresis. therefore a smooth growth path is desirable for sustainable growth. this brings us to the first role of the central bank in this talk, safeguarding stability and balance in the economy. in particular, the bank of thailand monitors three facets of stability : growth stability, price stability, and financial stability. in terms of growth stability, we have been on the low end of the balance. we observe thailand ’ s average growth to be near zero in the past three quarters, and currently we are still well below the long - term trend. the underperformance was contributed to by political uncertainty and drawdown from earlier accelerated spending encouraged by previous government policies. the long stretch of low growth calls for the central bank to step in with policy that shores up demand. the bank of thailand has implemented accommodative monetary policy since the beginning of the year, while price and financial stability were also carefully monitored to ensure they were not compromised. bis central bankers ’ speeches the accommodative stance has shored up demand up until now, with businesses gradually upgrading and adding capacity during the downturn, and as we enter recovery, they have retained the ability to resume production at normal levels. continuation of monetary policy accommodation will benefit further investment through the availability of funds, especially now that the recent political clarity helps restore confidence both domestically and internationally. revival of confidence is vital to recovery and restoration of growth towards potential. recent economic data is supportive, showing that consumption and tourism have started to pick up and stimulus measures from the government have risen. on the external front, the steady recovery of the world economy, especially the u. s, will bolster the export sector. all these positive prospects point to on - track economic recovery and movement towards fulfilling the growth stability objective. ladies and gentlemen, we forecast thailand to grow at around 4. 8 % next year, a rate that means steady recovery to normal levels of economic activity. as the economy returns to full capacity, inflation and financial risks may surface. to ensure sustainability, the process of growth must not create imbalances in the economy that will draw down future growth. this brings us to the two other aspects of stability : price and financial stability. the bank of thailand has had much success in anchoring inflation

rich opportunity from thailand strategic location. in the soccer game of the economy, the central bank acts as center back. in order to safeguard stability during the recent circumstances, we have played a proactive role due to high economic uncertainty. now that political and economic clarity is higher, the central bank will play a supportive role. at the back we can clearly see the whole field and choose a path to support the team ’ s offense, especially now that the government has gotten back to its position as the play maker to assist the private sector to reach the goal of achieving growth potential. thank you. bis central bankers ’ speeches the resilience of the thai economy 1. credible macroeconomic policies a key strength of the thai economy is sound macroeconomic policy management, which has allowed the country to weather through various shocks relatively well. in fact, it often tops the list of positive factors cited by credit rating agencies in their sovereign credit assessment reports. more specifically, the country is often credited for having a robust macroeconomic policy framework and close coordination among public agencies. – monetary policy : under a flexible inflation targeting framework, the monetary policy committee ( mpc ) cautiously weighs overall stability against downside risks to growth. in the absence of a fullyfunctioning fiscal authority prior to changes in the political situation, the mpc stepped up and reduced the policy rate to support the economy. – fiscal policy : fiscal policy formulation and public debt management are guided by explicit fiscal rules, which provide checks and balance against potential challenges to fiscal discipline from offbudget expenditure and financing. in this connection, public debt - to - gdp stood at 46. 85 % in july 2014, indicating favorable fiscal discipline. recently, the government has announced concrete roadmaps which help bolster public confidence. going forward, the government will continue to play proactive roles in supporting an economic rebound. 2. strategic location thailand is located in the center of the greater mekong sub - region ( gms ). rich human and natural resources in the gms will make it a new frontier for economic growth in asean, providing clear opportunities for the region. as asean comprises 600 million people, the majority of which are growing middle class, economic integration via the asean economic community will further enhance trade prospects through increase demands and an expanding market. building upon this strategic location, the government investment plans on infrastructure, particularly railways and roads, and the establishment of five special economic zones ( sez ) along provincial borders will help to facilitate an increase in border trade