Thailand Growth Projection Increased

March 31, 2010 Taxation in Thailand

2757-Thailand-Bangkok-Government HouseThe Ministry of Finance of Thailand has revised its 2010 Economic Projections, now expecting the economy to grow by 4.5 percent, compared to the previous estimate of 3.5 percent made in December 2009.

The Thailand Ministry of Finance issued a press release on March 29th announcing the revised growth projections and positive future outlook for economic expansion. In the new Government estimate Thailand’s annual economic growth rate is expected to reach between 4 percent and 5 percent in 2010. Satit Rungkasiri, Director-General of the Thailand Fiscal Policy Office (FPO), stated that the upward revision was spurned by both national and international factors: the better than expected levels of private internal consumption and better export performance of the national economy, and the faster-than-expected recovery of major international trading partners’ economy. On account of the expanding domestic economy and external drivers, Satit Rungkasiri said that the Government considered Thailand to be in a highly balanced position and not too reliant on any one aspect for its economic recovery. The Real Consumption Growth Rate has also been revised upwards to 4.3 percent, mainly due to increased performance of the agricultural sector of the economy and better national employment levels.

The latest report also shows an expected drop in 2010 unemployment levels to 1.3 percent, compared to 1.5 percent in 2009. The national trade balance is projected to decrease to USD 4.8 billion, from USD 19.4 billion in 2009. The current account is expected to reach 2.4 percent of GDP, 0.9 percent lower than previously projected.

As the same time, Ekniti Nitithanprapas, Director of the Thailand Macroeconomic Policy Bureau, stated that increased growth and consumption will drive inflation to an estimated 4.0 percent. A significant portion of the inflation increase has also been attributed to an expected increase in oil prices and oil based services.

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