GDP to shrink 3% this year: Finance Ministry

BANGKOK, Oct 28 (TNA) – Thailand’s Gross Domestic Product (GDP) is set to shrink 3.5-4 per cent in the third quarter of this year, but turn to grow 3-4 per cent in the fourth quarter, resulting in a GDP contraction of 3 per cent for the whole of the year, according to the Ministry of Finance.

Ministry spokesperson Ekniti Nitithanprapas said that GDP in the third quarter of 2009 edged up by around 2 per cent from the second quarter because the economy was bolstered by the faster budget disbursement and the economic recovery of key trade partners such as China, Australia and Hong Kong.

He predicted that GDP in the fourth quarter would turn to grow 3-4 per cent under the assumption that Dubai oil prices stay at an average of US$75 per barrel.

On mounting concerns over a threat by anti-government Red Shirt protesters to hold a major protest late next month, Mr. Ekniti allowed that it would slow the recovery of the local consumption and investment.

The risk from political factors, if persistent in the medium term, would impact the continuity and consistency of the government’s policy.

He said the ministry’s expectation that GDP in 2009 would shrink some 3 per cent had not yet been factored in impacts from the possible political turmoil. (TNA)