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54297
Tue, 04/07/2009 - 17:44
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http://m.oananews.org//node/54297
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World Bank: Thai economy contracts further 2.7% in 2009
BANGKOK, April 7 (TNA) - The global economic meltdown has impacted Thailand’s economy more severely than earlier projected, forcing the World Bank to revise down this country’s growth to contract 2.7 per cent in 2009 and 4.9 per cent in the worst-case scenario, a senior official said Tuesday.
Kirida Bhaopichitr, the World Bank's economist for Thailand, said the agency had earlier projected that Thailand’s economy would grow by 2 per cent in 2009 but had to reduce its estimate due to the continued global financial crisis which has affected Thailand much more severely than earlier thought.
She said the latest economic projection would make Thailand suffering highest contraction among developing countries in East Asia. Ms. Kirida said it would be the first time that the Thai economy would enter recession in the past 11 years.
Thailand’s gross domestic product (GDP) in 2007 grew 4.9 per cent, but this year will contract 2.7 per cent, meaning the national economy will contract 7.6 per cent with exports being hardest hit as the value in US dollar terms would be cut by 17 per cent, she said.
Earnings from tourism will also sharply decline due to Thailand’s political unrest and the closure of the country's airports late last year and investment is expected to fall 2.1 per cent, consumption to rise only 1.4 per cent and imports to retreat 16.4 per cent due to sluggish demand, Ms. Kirida indicated.
The World Bank suggested that Thailand accelerate its economic stimulus programmes during the second quarter this year, which could help boost GDP by between 0.5-1.7 per cent, she said.
The second package of the Thai government’s economic stimulus programme should also focus on rising unemployment, while it must also find lending sources to support its investment in basic infrastructure, she said. - (TNA)
Kirida Bhaopichitr, the World Bank's economist for Thailand, said the agency had earlier projected that Thailand’s economy would grow by 2 per cent in 2009 but had to reduce its estimate due to the continued global financial crisis which has affected Thailand much more severely than earlier thought.
She said the latest economic projection would make Thailand suffering highest contraction among developing countries in East Asia. Ms. Kirida said it would be the first time that the Thai economy would enter recession in the past 11 years.
Thailand’s gross domestic product (GDP) in 2007 grew 4.9 per cent, but this year will contract 2.7 per cent, meaning the national economy will contract 7.6 per cent with exports being hardest hit as the value in US dollar terms would be cut by 17 per cent, she said.
Earnings from tourism will also sharply decline due to Thailand’s political unrest and the closure of the country's airports late last year and investment is expected to fall 2.1 per cent, consumption to rise only 1.4 per cent and imports to retreat 16.4 per cent due to sluggish demand, Ms. Kirida indicated.
The World Bank suggested that Thailand accelerate its economic stimulus programmes during the second quarter this year, which could help boost GDP by between 0.5-1.7 per cent, she said.
The second package of the Thai government’s economic stimulus programme should also focus on rising unemployment, while it must also find lending sources to support its investment in basic infrastructure, she said. - (TNA)
