PM confident economy will become positive in fourth quarter

BANGKOK, Aug 30 (TNA) — Prime Minister Abhisit Vejjajiva on Sunday expressed optimism that Thailand’s national economy would turn around to become positive in the final quarter of 2009.

In his weekly address on television and radio, Mr. Abhisit said the latest statistics disclosed by the National Economic and Social Development Board showed that national economy contracted 4.9 per cent during the second quarter of this year, a sharp improvement from the 7.1 per cent contraction during the first quarter.

The improvement showed that the Thai economy has now passed its lowest point and is starting to grow, he said, adding that he is confident that the economy will turn around to become positive in the fourth quarter as entrepreneurs have started to employ workers again.

“This is a positive signal. However, the government must both accelerate and be careful regarding its spending and investment,” said Mr Abhisit.

He said both government spending and investment must move “swiftly and efficiently” as it was found that its spending was one of the factors in improving the economy in the second quarter.

Despite his optimism on the economy, Mr Abhisit said rising oil prices, the spread of the Influenza A (H1N1) and political unrest in Thailand remain strong negative factors and could affect the economy.

He said his government would keep domestic prices of high-speed diesel fuel below Bt30 per litre while it is still worried about the virus although the number of fatalities has now started declining.

It would be difficult for the economy to recover if local political unrest continued and that is the reason why the government has imposed the Internal Security Act (ISA) to prevent any violence which might occur during any activity by anti-government protestors, he added.

Supporters of the anti-government United Front for Democracy against Dictatorship have postponed their massive rally in central Bangkok scheduled earlier for Sunday to the coming Saturday, September 5, citing the government imposition of the ISA. (TNA)