Thai economy in Q1 grows by 12 per cent

BANGKOK, May 24 (TNA) – The Thai economy in the first quarter expanded by 12 per cent , the highest growth rate in 15 years, Amphon Kittiamphon,
secretary-general of the Office of the National Economic and Social Development Board (NESDB) said on Monday.

The Thai economic rebound is due to a continuous growth in exports by 16.2 per cent from  just 4.1 per cent in the fourth quarter last year.

Thai exports in the first quarter valued at US$44.3 billion, a record high since 2006.

The industrial sector grew by 22.8 per cent. Tourist arrivals were recorded at 4.7 million in the first three months of 2010, 28.4 per cent growth compared to the same period last year.

Private investment expanded 15.8 per cent owing to investors’ confidence.

Household spending grew four per cent thanks to higher purchasing power of consumers.

The Thai economy in 2010 was earlier projected to grow 6-7 per cent but the violent political turmoil which escalated to riots and widespread arson and looting in the capital Bangkok prompted the NESDB to forecast economic growth this year at 3.5-4.5 per cent.

The economy in the second quarter was not likely to contract, supported by exports and tourism income in the first quarter.

However, the economy in the second half of 2010 may shrink due to political turmoil if the problem cannot be brought under control.

Mr Amphon urged the government to urgently restore confidence among local and foreign investors and to continue implementation of the five-point reconciliation plan and the economic stimulus projects as well as disbursement of 2011 fiscal budget.

He also advised the government to speed up dealing with the drought and to prepare with plans to revive tourism. (TNA)