Korn confident GDP to grow by 4.5% in 2010

BANGKOK, 30 March 2010 (NNT) – The country’s gross domestic product (GDP) will likely expand by 4.5% in 2010 despite the ongoing political tension, according to Finance Minister Korn Chatikavanij.

Mr Korn expressed confidence that the economic growth projection recently released by the Fiscal Policy Office (FPO) and the 2010 budget disbursement were still achievable despite political uncertainties. He assured that the economy could expand by 4.5% as projected if there is good participation from the business sector and the political problem returns to normalcy.

The government’s ‘Strong Thailand’ economic stimulus scheme might be affected by the current political crisis, acceded the minister, adding that the people’s income would improve if the economic growth remained on the projected range. He added that the ministry would not propose the draft bill on land and buildings taxes to today’s cabinet meeting because the relevant authorities are still in the process of gathering information.

According to FPO Director Satit Rungkasiri, this year’s GDP growth projection has been revised, from 3.5% made at the end of last year to 4.5%. He elaborated that the GDP could further contract by 0.2-1.8% this year due to political quagmire and the protracted mass rallies of the anti-government United Front of Democracy Against Dictatorship (UDD).