PM confident exports will pick up late this year

BANGKOK, Aug 25 (TNA) – Prime Minister Abhisit Vejjajiva on Monday voiced confidence that the country’s exports would begin to contract at a slower pace and turn around to pick up late this year after the overall economy showed signs of recovery.

Presiding over the award presentation for exporters of goods and services with outstanding performance for 2009, he said that the country’s exports had been adversely affected by the global economic crisis this year.

Currently, however, overseas purchasing power has improved in tandem with the global economic resilience. Consequently, it is expected that exports would begin picking up at the end of this year.

To make exports become a key driving force for the economy, he said, the government would encourage state-owned financial institutions to lend to stimulate the economy and attempt to oversee farm products and production process to ensure readiness for export.

He conceded exporters would still experience great fluctuations in the money market and that they need to manage foreign exchange risks for a smoother export process.

More importantly, the “Creative Thailand” approach must be adopted for product quality development to boost competitiveness overseas.

The premier said he is confident that export performance would begin improving although figures would remain in negative territory.

Mr Abhisit said he shared the Ministry of Commerce view that exports would shrink 13-17 per cent overall this year.

The prime minister predicted that the gross domestic product (GDP) would contract at a slower pace in the third quarter and resume positive growth in the fourth quarter. (TNA)