Economy signals continued recovery

BANGKOK, Jan 28 (TNA) – The Thai economy signalled a continued recovery with a growth of more than 3.5 per cent in the fourth quarter of 2009, resulting in the gross domestic product (GDP) shrinking only 2.8 per cent for the whole year, lower than 3 per cent as many expected, according to the Fiscal Policy Office.

FPO Director-General Satit Rungkasiri said the GDP is expected to expand 3.5-4 per cent for this year, but the growth is likely to reduce by 0.5 per cent to 3 per cent if there was a delay in efforts to solve the investment project suspension in the Map Ta Phut Industrial Estate.

The heightened political situation is another key risk factor that could dampen Thailand’s economic growth in addition to a slower-than-expected budget disbursement.

He said the global economic situation needed to be closely monitored because it could experience a slowdown again.

FPO spokesman Ekniti Nitithanprapas said the economic conditions in the fourth quarter of 2009 continued to pick up with exports turning to grow 11.9 per cent with a value of US$43.3 billion against the contraction of 17.7 per cent in the previous quarter.

Key export destinations include China, Japan, India, and the Association of Southeast Asian Nations (ASEAN). Imports grew 0.3 per cent, the first time in the year, with a value of $40.3 billion. Most imports are raw materials used for producing goods for local sale.

The general inflation rate in December increased to 3.5 per cent, fuelled by the government’s measures to reduce people’s living costs and low oil prices. (TNA)