ID :
53197
Tue, 03/31/2009 - 22:34
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http://m.oananews.org//node/53197
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ADB sees Thai economy contracting 2 per cent in 2009
BANGKOK, March 31 (TNA) - Thailand, an Asian country whose economy relies heavily on exports, is expected to see its economic growth contract about 2 per cent in 2009 and nearly two million people will become jobless due to the global economic meltdown, The Asian Development Bank said on Tuesday. according to Jean-Pierre Verbiest, director of the Asian Development Bank (ADB) Thailand office.
Quoting the annual Asian Development Outlook report, the ADB's director for Thailand Jean-Pierre Verbiest said the projected contraction for 2009 is to be Thailand’s first reported shrinkage since the 10.5 per cent shrink experienced in 1998 caused by the Asian financial crisis.
The report said the forecast were subject to two key downside risks. A more prolonged recession in major trading partners would lower exports of goods and services by more than expected. That would further weaken domestic demand and take GDP (gross domestic product) below the baseline projection.
Political uncertainty is another risk, and that could delay the crucial boost in public spending, and thus seriously affect recovery prospects, the report said.
Thailand’s exports this year are projected to decline about 18 per cent, while imports are expected to retreat 28 per cent, suppressed by weak domestic demand and reduced needs for inputs to the export industries, it said.
The balance of trade is expected to record a large surplus of US$18 billion in 2009 and the current account is projected to enjoy a surplus of 8 per cent of GDP, the report said.
Inflation in Thailand in 2009 is projected to stay at 0.5 per cent. It suggested that the Thai government might need to consider running significant fiscal deficits for a few years, possibly breaching the self-imposed debt limit in order to support growth.
Mr. Verbiest said the ADB concern is focused on two major problems of the Thai economy: unemployment and non-performing loans if the world economic slowdown is prolonged. -(TNA)
Quoting the annual Asian Development Outlook report, the ADB's director for Thailand Jean-Pierre Verbiest said the projected contraction for 2009 is to be Thailand’s first reported shrinkage since the 10.5 per cent shrink experienced in 1998 caused by the Asian financial crisis.
The report said the forecast were subject to two key downside risks. A more prolonged recession in major trading partners would lower exports of goods and services by more than expected. That would further weaken domestic demand and take GDP (gross domestic product) below the baseline projection.
Political uncertainty is another risk, and that could delay the crucial boost in public spending, and thus seriously affect recovery prospects, the report said.
Thailand’s exports this year are projected to decline about 18 per cent, while imports are expected to retreat 28 per cent, suppressed by weak domestic demand and reduced needs for inputs to the export industries, it said.
The balance of trade is expected to record a large surplus of US$18 billion in 2009 and the current account is projected to enjoy a surplus of 8 per cent of GDP, the report said.
Inflation in Thailand in 2009 is projected to stay at 0.5 per cent. It suggested that the Thai government might need to consider running significant fiscal deficits for a few years, possibly breaching the self-imposed debt limit in order to support growth.
Mr. Verbiest said the ADB concern is focused on two major problems of the Thai economy: unemployment and non-performing loans if the world economic slowdown is prolonged. -(TNA)
