ID :
47114
Mon, 02/23/2009 - 15:30
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http://m.oananews.org//node/47114
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Economy grew only 2.6% in 2008; slump continuing into Third Quarter
BANGKOK, Feb 23 (TNA) -- Battered by the global economic slump coupled with last year's domesic political unrest and airport closures, Thailand's economy in 2008 grew only 2.6 per cent, down sharply from 4.9 per cent in 2007, according to Amphol Kitti-amphon, secretary-general of the National Economic and Social Development Board (NESDB).
Dr. Amphol noted that Thailand's economy during the last quarter of 2008 dropped for the first time to 4.3 per cent since 1998 because of the world economic recession which affected the country's exports, coupled with tourism industry after shocks following the week-long closure of Bangkok's Don Mueang domestic airport and Suvarnabhumi international airport by anti-government protesters in November and December last year.
Thailand's economy, he said is expected to continue shrinking until the third quarter of this year, when it is projected to hit bottom, but then begin improving in the final quarter.
The country's gross domestic product this year is projected to contract between 1 and zero per cent compared to an earlier projection that it would grow around 3-4 per cent, Mr. Amphol said.
He expressed concern that exports in 2009 would contract 13.1 per cent after tumbling 26.5 per cent in January, even as imports of steel and capital goods contracted 43 per cent, showing that production for export-oriented goods had become sluggish.
However, Thailand's economy may not contract this year if the government issues more economic stimulus measures and seriously implements them, accelerates disbursals of budget allocations for the fiscal year, speed up construction of vital public projects and, most importantly, the world economy improves, Dr. Amphol said.
Export earnings this year are expected to lose between Bt200-300 billion, but the Thai economy would not contract if the government speedily and effectively implements the proposed measures, he said.
Unemployment in Thailand is expected to rise to between 2.5-3.5 per cent, or around 900,000 persons to 1.3 million people, he added. (TNA)
Dr. Amphol noted that Thailand's economy during the last quarter of 2008 dropped for the first time to 4.3 per cent since 1998 because of the world economic recession which affected the country's exports, coupled with tourism industry after shocks following the week-long closure of Bangkok's Don Mueang domestic airport and Suvarnabhumi international airport by anti-government protesters in November and December last year.
Thailand's economy, he said is expected to continue shrinking until the third quarter of this year, when it is projected to hit bottom, but then begin improving in the final quarter.
The country's gross domestic product this year is projected to contract between 1 and zero per cent compared to an earlier projection that it would grow around 3-4 per cent, Mr. Amphol said.
He expressed concern that exports in 2009 would contract 13.1 per cent after tumbling 26.5 per cent in January, even as imports of steel and capital goods contracted 43 per cent, showing that production for export-oriented goods had become sluggish.
However, Thailand's economy may not contract this year if the government issues more economic stimulus measures and seriously implements them, accelerates disbursals of budget allocations for the fiscal year, speed up construction of vital public projects and, most importantly, the world economy improves, Dr. Amphol said.
Export earnings this year are expected to lose between Bt200-300 billion, but the Thai economy would not contract if the government speedily and effectively implements the proposed measures, he said.
Unemployment in Thailand is expected to rise to between 2.5-3.5 per cent, or around 900,000 persons to 1.3 million people, he added. (TNA)
