Thailand's economy in the first quarter may contract over 5 percent while revenues from export and tourism sectors plummeted, Prime Minister Abhisit Vejjajiva said on Apr. 30.
PM Abhisit made the remarks at a seminar organised by the National Economic and Social Advisory Board the same day.
He admitted that the economy is in the severe condition, due to the global crisis and political turbulence which highly affect exports and the tourism industry, the Nation newspaper said.
The gross domestic product (GDP) in the first quarter would probably drop over 5 percent due to the sharp decline in export and tourism. PM Abhisis said the government’s tax revenue this year would definitely be lower than the initial target by 200 billion baht (roughly 5.66 billion USD).
In his speech, the Thai PM also added that the public debts could rise to 60 percent of gross domestic product, but insisted that Thailand remains an attractive investment destination to foreign investors.
To solve economic problems, the government has provided guarantees on agricultural products prices and boost the manufacturing sector particularly those in the auto industry, as well as promote alternative energy.
He also insisted that the government should start executing the second stimulus package worth 1.56 trillion baht late this year./.