Thai economy expected to grow 2% in 2002

Asian Economic News, Dec 24, 2001

BANGKOK, Dec. 17 Kyodo

The Thai economy is expected to expand by 2% next year as it continues to face downside risks from the ongoing global slowdown led by the U.S. economy, the National Economic and Social Development Board said Monday.

The board also said Thailand's gross domestic product (GDP) for this year will likely grow by 1.5%, at the bottom of the previous projection made in September of 1.5% to 2%.

GDP in the third quarter grew by 1.5% year on year, compared to on-year growth of 1.8% in the first quarter and 1.9% in the second, the board said.

Exports for the year are expected to fall 6.7% on the year but grow 1.5% next year, it said.

For this year, private consumption is expected to rise 2.5% year on year and private investment will increase by 3%, compared to 14.6% last year.

The board suggested the government speed up state expenditures to boost domestic demand, increase productivity and fight poverty as recovery in the world economy remains uncertain.

It also forecast that the Thai economy will grow by only 1.3% next year if the global economy does not pick up by the end of next year.

However, if the world economy begins to recover and the government's stimulus measures bear fruit, the economy could grow by as much as 2.7%, it said.