Govt Urged To Reduce Luxury Good Imports

Govt urged to reduce luxury good imports

BANGKOK: -- The government has been urged by the Federation of Thai Industries (FTI) to reduce the import of luxury goods and promote exports to help stop Thailand’s ballooning current account deficit.

According to the latest statistics, Thailand has a trade deficit of nearly three billion and a current account deficit of 1.5 billion dollar largely because of the imports of oil and capital goods.

The situation can be salvaged, the FTI president Prapat Pothiworakhun told TNA. These macro-economic figures could be reversed if urgent action is taken to increase tourist revenue and continued investment by the private sector.

The FTI expects the economy to grow at 5.5 per cent this year, and industrial output at around 10%, slightly less than previously forecasted.

To help reduce the nation’s trade deficit, Thais should be discouraged from making shopping trips abroad and the imports of luxury goods controlled, Mr. Prapat suggested.

As energy is largest import, the FTI has pledged to reduce Thai industries use of energy by 10%.

The FTI plans to meet the Prime Minister soon to discuss industrial reform and how Thai industries could help save energy.

--TNA 2005-05-02