Kasikorn Research sees Thai economy contracting 5.6-7% in second quarter 2009

BANGKOK, May 30 (TNA) – The Kasikorn Research Centre predicts that Thailand’s economy will contract 5.6-7 per cent during the second quarter of 2009.
 
The Kasikorn Bank (K-bank) think-tank projection is a slight improvement from the contraction of 7.1 per cent in the gross domestic product (GDP) during this year’s first quarter announced by the National Economic and Social Development Board (NESDB) earlier this week.
 
The K-bank Centre said positive signs appeared in some economic indicator categories after the first quarter this year, especially government spending to stimulate the domestic economy, higher production and increased spending by the private sector.
These positive factors are expected to stimulate the economy, but they must be evaluated cautiously whether they could help recover economy in the latter stage, according to the Centre.
 
Thailand’s domestic political unrest in conjunction with low confidence in the national economy and uncertainty regarding the timetable of its recovery are major factors that must be closely monitored, Kasikorn added. (TNA)