Saturday, September 15, 2007

Thailand's GDP to grow 4.5-6% in 2008

Although US economic problems will have a negative impact on exports by Asian countries, the Bank of Thailand (BoT) governor Tarisa Watanagase said Saturday she is confident that Thailand's economic growth in 2008 would nevertheless reach the target of 4.5-6 per cent.

It will be some time before the effect of US sub-prime loans upon Thai exports in 2008 can be assessed, she said, and it is too soon to jump to the conclusion that this country's economic growth would decline to 1-2 per cent next year.

However, Mrs. Tarisa admitted that the slowdown in the US economy will affect exports of Asian countries but not critically.

Projections on Thai economic growth in 2008 is still maintained at 4.5-6 per cent due to planned government investment in mega-projects which is expected to stimulate investment by the private sector and the disbursement of government spending for fiscal 2008 beginning October 1 this year, said Mrs. Tarisa.

Concerned officials are watching how the US Federal Reserve would resolve the sub-prime mortgages problem and whether it would cut interest rate as projected during its meeting next Tuesday, she added. (TNA)

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