ID :
62301
Mon, 05/25/2009 - 16:01
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http://m.oananews.org//node/62301
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Thai economy shrinks 7.1% in first quarter
BANGKOK, May 25 (TNA) -- Thailand’s economy has definitely entered a recession, the National Economic and Social Development Board (NESDB) announced on Monday, after the Thai gross domestic product (GDP) contracted by 7.1 per cent in the first quarter of 2009 -- a far larger drop than the 4.3 per cent drop registered in the last quarter of 2008.
Thailand's 7.1 per cent contraction is the biggest drop since the 1997 financial crisis, according to NESDB Secretary-General Amphol Kitti-amphon.
The continuing global economic meltdown which is now expected to contract 4 per cent forced Thai exports to tumble 16.4 per cent while household consumption contracted for the first time in 12 years at 2.6 per cent and private investment 17.7 per cent during the first quarter of this year, he said.
Because of these negative factors, the NESDB has downgraded Thailand’s GDP to contract between 2.5-3.5 per cent during the calendar 2009 from the not more than 1 per cent projected in February, said Mr. Amphol.
He projected the Thai economy had already hit bottom during the first quarter of 2009 but if domestic political unrest continues as happened last month, the economy would not be able to recover in 2010, as projected earlier.
It is hoped that the economy could start recovering late in the third or early in the fourth quarter this year if the government begins investing in the second round of its economic stimulus programme running from 2010 to 2012, he said.
The government should start investing in major programme projects by September at latest as it could persuade private investors to follow suit in the first or second quarter of 2010, he said.
Besides downgrading GDP for 2009, the NESDB has forecast that Thailand’s exports would contract 15 per cent more than the 13 per cent projected earlier, imports to shrink further to 19.6 per cent from 14 per cent, trade to enjoy surplus of over US$8.3 billion, current account to also enjoy a surplus of US$9.3 billion and inflation is projected to contract or rise in a range of +/- 0.5 per cent, he added. (TNA)
Thailand's 7.1 per cent contraction is the biggest drop since the 1997 financial crisis, according to NESDB Secretary-General Amphol Kitti-amphon.
The continuing global economic meltdown which is now expected to contract 4 per cent forced Thai exports to tumble 16.4 per cent while household consumption contracted for the first time in 12 years at 2.6 per cent and private investment 17.7 per cent during the first quarter of this year, he said.
Because of these negative factors, the NESDB has downgraded Thailand’s GDP to contract between 2.5-3.5 per cent during the calendar 2009 from the not more than 1 per cent projected in February, said Mr. Amphol.
He projected the Thai economy had already hit bottom during the first quarter of 2009 but if domestic political unrest continues as happened last month, the economy would not be able to recover in 2010, as projected earlier.
It is hoped that the economy could start recovering late in the third or early in the fourth quarter this year if the government begins investing in the second round of its economic stimulus programme running from 2010 to 2012, he said.
The government should start investing in major programme projects by September at latest as it could persuade private investors to follow suit in the first or second quarter of 2010, he said.
Besides downgrading GDP for 2009, the NESDB has forecast that Thailand’s exports would contract 15 per cent more than the 13 per cent projected earlier, imports to shrink further to 19.6 per cent from 14 per cent, trade to enjoy surplus of over US$8.3 billion, current account to also enjoy a surplus of US$9.3 billion and inflation is projected to contract or rise in a range of +/- 0.5 per cent, he added. (TNA)
