Slump in economy continues
Thailand’s future looks bleak says the latest figures released by the economic planning agency. This prompted the agency to downgrade its forecast for gross domestic product in 2009. The adjusted first quarter has been down by 1.9% from the last quarter of last year and down by 7.1% on the first quarter of last year.
Thailand is heavily dependent on exports which constitute 65% of its economy and it has been hit by economic slump in USA, Europe and China. Exports sank by 16.4% during the last quarter. Leading companies like GM, Seagate technology have chalked out plans to cut production and reduce labor.
Thailand has been plagued by instability since May 2008 when anti-government began in Bangkok leading to closure of Bangkok’s two international airports for eight days in November and December. In April of this year, the prime minister was forced to cancel the ASEAN summit to be held in Pattaya.
Korbsak Sabhavasu – Thai deputy prime minister said that the expected growth to the economy would be seen in the second quarter as the 116-billion-baht economic stimulus package would start yielding fruit. He further added that the government would be able to borrow 400 billion Baht in additional funds once the ruling by the constitution court comes into affect.