UNCTAD chief still confident of Thai economic fundamentals

BANGKOK, Sept 8 (TNA) – The Thai economy remains strong and able to
continue growing in the long run despite the short-term impact of the
current political turmoil, according to a top Thai economist.

United Nations Conference on Trade and Development (UNCTAD)
secretary-general Supachai Panichpakdi conceded that foreigners are
concerned with the ongoing political unrest in Thailand and do not want to
see the problem drag on.

A survey on opinions of Asian investors about Thailand's economic
fundamentals, which was made one year before the political rally began,
showed that most investors viewed the Thai economy had a sound structure
and a good potential for growth after that of China.

Supachai said that international business observers are closely monitoring
what direction political developments in Thailand will take.

He allowed that the government's imposition of the State of Emergency
Decree last week would undermine confidence among international tourists
planning to visit Thailand, but said that it is the responsibility of Thai
embassies and consulates to explain the situation to foreigners and
investors so that they properly understand the situation.

In the long term, the UNCTAD chief said, Thailand still has the economic
potential to compete with other countries.

A study on the impacts of the political situation on the Thai economy
found that foreign investors
did not pay attention to the economy in the short run, but instead
preferred to invest in the long run.

Dr. Supachai said he believed Thailand's macro-economy would continue
growing steadily given its competitive fundamentals and sound long-term
structure.

"Once the trade talks in the Doha round under World Trade Organization
supervision ends, the Thai economy will be boosted by the farm product
market liberalisation.

"Many production and export-oriented countries including Brazil and
Thailand will benefit because prices of commodities in the world market
are expected to rise after a slight drop this year," he said.

"In case a world food crisis erupts," Dr. Supachai said, "Thailand, as a
major food exporter will have an advantage because it has a sound policy
to promote the agricultural sector. Members of UNCTAD have put the policy
adopted by Thailand into practice."

Regarding rising inflation, he said it is a common problem facing other
countries now that the global economy had begun to slow down.

He predicted that the Thai baht would appreciate against the US dollar
since the country had managed to boost its competitiveness.