News Room - Business/Economics

Posted on 29 Feb 2008

Thailand’s growth seen at 4.5-5.5%

The Thai economy is expected to edge up more in the second half of the year, with full-year growth projected between 4.5% and 5.5%, according to an economic forecaster.

High costs of living, rising energy prices, and ongoing baht appreciation would still pose the major threats to the economy, said Thanavath Phonvichai, director of the Center for Economic and Business Forecasting at the University of the Thai Chamber of Commerce (UTCC).
 
But at the same time, he said, the political situation was expected to become more stable, leading both local and international investors to revive their investment in the country.

The government's investment plan for megaprojects would also be a big plus, he said.

Prime Minister Samak Sundaravej has pledged 1.5 trillion baht worth of new programmes in five areas: Bangkok mass transit, logistics, water management, education, and public health.The government plans to bolster the economy by restarting projects, including mass transit, that were shelved after former prime minister Thaksin Shinawatra was toppled in a 2006 military coup.

The economy expanded 5.7% in the fourth quarter.