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52288
Wed, 03/25/2009 - 20:49
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http://m.oananews.org//node/52288
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Finance ministry projects Thai economy to contract 2.5% in 2009
BANGKOK, March 25 (TNA) - Thailand’s economy is now expected to contract 2.5 per cent in 2009 compared to 2.6 per cent in growth last year, a senior Finance Ministry official said on Wednesday.
Fiscal Policy Office Director-General Somchai Sajjapong said the latest projection conducted earlier this month showed that the country’s economic growth will shrink due to economies of Thailand’s key trading partners falling far more than earlier expectations while local private investment and consumption has been reduced.
Uncertainty in employment also plays a key role in Thai economy, he said. Budget disbursement and spending could help support local demand from declining too heavily.
Mr. Somchai said the latest projection also showed that inflation this year would fall to 0.7 per cent due to hefty decline in oil prices while current account would enjoy a surplus of 9.8 per cent of gross domestic product due to an expected sharp decline in imports.
Goods exports and services in 2009 are expected to contract 14.8 per cent while imports will contract 25.2 per cent, private investment will also be in the red by 6.1 per cent and private consumption will decline to 1.2 per cent, said Mr. Somchai.
Government investment in 2009 is projected to rise to 7 per cent from last year, he said. (TNA)
Fiscal Policy Office Director-General Somchai Sajjapong said the latest projection conducted earlier this month showed that the country’s economic growth will shrink due to economies of Thailand’s key trading partners falling far more than earlier expectations while local private investment and consumption has been reduced.
Uncertainty in employment also plays a key role in Thai economy, he said. Budget disbursement and spending could help support local demand from declining too heavily.
Mr. Somchai said the latest projection also showed that inflation this year would fall to 0.7 per cent due to hefty decline in oil prices while current account would enjoy a surplus of 9.8 per cent of gross domestic product due to an expected sharp decline in imports.
Goods exports and services in 2009 are expected to contract 14.8 per cent while imports will contract 25.2 per cent, private investment will also be in the red by 6.1 per cent and private consumption will decline to 1.2 per cent, said Mr. Somchai.
Government investment in 2009 is projected to rise to 7 per cent from last year, he said. (TNA)
