The Thai economy is on the path to expand by 5.6 percent, which is mainly driven by export rise, local media reported.
The Finance Ministry’s Director of the Fiscal Policy Office (FPO), Pannee Satawarodom, said fundamentals are still cushioning the Thai economy from external risks, and the Office is standing by the earlier forecast growth rate at 5.6 percent, Thai News Agency (TNA) said.
The Thai economy is expected to fare better than the 4.8 percent growth recorded in 2007, following a robust 6 percent growth during the first quarter this year. Experts attribute the growth to Thai exports to new markets in Asia and the Middle East.
At this rate, exports are projected to expand by 8 percent this year, compared to 7 percent last year. Meanwhile, imports are expected to rise in line with the recovery of domestic activities to nearly 10 percent this year compared to 3.5 per cent in the previous year.
Pannee noted that rising inflation meanwhile poses one major risk factor as headline inflation is forecast at 7.2 percent this year and could peak at ten in the face of skyrocketing fuel prices, according to TNA.