News Room - Business/Economics

Posted on 19 Jan 2010

GDP, inflation both to rise in 2010 (Thailand)

Thailand's gross domestic product this year should grow by three to four per cent, with the inflation rate likely to rise four or five per cent, Finance Ministry spokesman Akeniti Nititanprapas said on Monday.

 

Mr Akeniti said the country should see  economic growth of up to four per cent in 2010 due to higher public spending and better prices for agricultural goods.

 

However, inflation rate would also likely rise, by four to five per cent, because of the labour shortage, potential high imports and the large inventory of products.

 

"The 350-billion-baht Thai Khem Khaeng economic stimulus scheme will be able to support the economy even if there's a change in the government," Mr Akeniti said.

 

The investment sector should see about eight per cent growth but would not fully recover as it contracted 13 per cent last year, he said.

 

"If the Map Ta Phut problems are not solved quickly, the confidence of investors would be affected in the middle and long term," he said.

 

The

Supreme Administrative Court

last month affirmed the suspension of 64 out of 76 industrial projects in Map Ta Phut for failure to comply with constitutional requirements on the need for environmental and health impact assessments.

 

The spokesman also expected fuel prices to move up this year.