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Thai economy to contract further in Q1: PM
AFP - Sunday, March 1
BANGKOK (AFP) - - The struggling Thai economy is likely to contract further in the first three months of this year as exports take a hit from the global financial meltdown, the prime minister said Sunday.
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Gross domestic product fell by 4.3 percent in the fourth quarter of last year, and Prime Minister Abhisit Vejjajiva warned worse could come.
"The government believes that the Thai economy in the first quarter of 2009 is likely to remain in the negative zone -- equal to or down further than that of the fourth quarter last year," said Abhisit.
"During the past week we saw poor export and trade figures from several countries around the region. Not only our country but also other countries were affected," he added.
Speaking during his weekly television address, Abhisit said he was confident a 116.7-billion-baht (3.3-billion-dollar) government stimulus package would help boost the economy in the second and third quarters.
In the meantime his administration would borrow money from abroad to stimulate the economy during the current crisis.
"Our budget is not sufficient, so the government has prepared an option plan to borrow money from abroad. This is necessary," he said, adding that the cabinet would ask for parliament's approval for the loans very soon.
"If approved, this will help alleviate suffering from the economic crisis," Abhisit said.
The government's National Economic and Social Development Board has forecast growth across 2009 at between minus 1.0 and zero percent.
The Thai economy grew by 2.6 percent in 2008 as a whole -- the slowest in seven years.
Thailand has suffered as its key export partners in the United States, Europe and Japan cut orders as world financial woes take a harsh toll.
The kingdom has also been beset by crippling domestic upheaval, with a protest group shuttering Bangkok's two airports for a week in late November, costing the kingdom an estimated 290 billion baht, the central bank has said.
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