Thai Prime Minister expects growth in economy next year
Thailand Prime Minister Abhisit Vejjajiva said that the worst phase of the economy may have passed during which the Thai economy shrank by as much as 5% in 2009. He said that he expects the economy to grow by 1-2% next year.
He was speaking at the Third Euromoney Thailand Investment forum to about 1000 participants. Finance Minister Korn Chatikavanij and CIMB Group Chief Executive Datuk Seri Nazir Razak were also present at the forum.
He further added that Thai economy suffered a great deal in the past year with exports down by 20% in last 5 months and also a 20% dip in tourist arrivals.
He also said that the Democratic government which led the country during 1997 Asian financial crisis had moved in swiftly to deal with the economic slowdown by implementing various stimulus packages.
The central bank of Thailand and the government have stood on common ground on cutting down interest rates and fiscal measures to be taken to tackle the economic slump and political strife in Thailand. Also, the government under the leadership of Abhisit has doled out tax breaks, cash handouts and cheap utilities for the poor people to kick start the economy.
The government is now seeking the $23 billion, to help finance the stimulus package and fiscal deficits over the next three years.