Thailand's gross domestic product fell six per cent in the first six months of this year but grew 2.3 per cent in the second quarter over the previous quarter, the National Economic and Social Development Board (NESDB) reported on Monday.

The economic slump had started easing as the GDP in the second quarter of 2009 contracted 4.9 per cent year-on-year. The GDP in the first quarter plummeted 7.1 per cent compared to the same period of last year.

"The Thai economy has passed the lowest point of the economic crisis and began to pick up in the end of the second quarter.

“Some positive signs are the recovering global economy coupled with higher household spending, more spending and investment from the state sector, production increases and higher consumer confidence,” the NESDB reported.

According to the NESDB's latest forecast, the country's GDP for the whole year would likely shrink three to 3.5 per cent while the economy in 2010 should increase about two to three per cent.

The state economic think tank also believed the GDP would be positive in the fourth quarter of this year.

However, Thai Chamber of Commerce Chairman Dusit Nontanakorn said the Thai economy in the fourth quarter would likely improve even though the NESDB had lowered this year's gross domestic product projection.

The NESDB expected this year's economy to contract 3.5 to 3 per cent. It previously forecast that the 2009 economy would shrink by 3.5 to 2.5 per cent.

"We should not be too concerned over the NESDB's recent forecast as we should look at the economy in the long run," Mr. Dusit said.

He believed the economy should improve in the fourth quarter of this year and would continue to expand in the first half of 2010.

"The political crisis, the social rifts and the oil prices should still be closely monitored during the second half of this year," he warned.

The Thai Chamber of Commerce chairman also called on the industrial sector to speedily boost its competitiveness after the Association of Southeast Asian Nations (Asean) agreed to establish a free-trade zone by 2015.

For the full report by NESDB, pls click here

Source BangkokPost.com
Published: 24/08/2009 at 04:39 PM