Thaksin Believes Economy Improve Later This Year

[george]

PM believes economic conditions to improve later this year

PHAYAO: -- Thailand's economic conditions are likely to improve later this year, thanks to the government's investment on its mega-projects and increasing domestic consumption, according to Prime Minister Thaksin Shinawatra.

The prime minister told journalists before the roving cabinet meeting in the country's northern Phayao Province this morning that he believed the government's planned mega-projects on expanded national infrastructure and public utility, worth around Bt1.7 trillion, would begin to help stimulate domestic economic activities in the second half of this year, particularly on the third quarter onwards.

"The mega-projects will help stimulate domestic investment and consumption, which will spur the nation's overall economic activities eventually", he noted.

Mr. Thaksin said that the government would try to achieve the national economic growth rate of around 5 percent this year although the country was facing such key negative factors as global oil price hikes and the weakening Thai baht.

The Thai leader, however, expressed his concern over the weaker Thai currency, admitting that it would affect the country's gross domestic product (GDP) growth.

The prime minister affirmed that the government would not intervene, but allow the Bank of Thailand (BOT) to supervise the movements of the Thai currency to be in line with the regional direction.

Like other currencies in the region, the Thai baht has weaken against the US greenback over the past weeks due to better than expected US economic figures, which were released recently.

The Thai currency closed at Bt40.85-40.87 a US dollar in Bangkok's financial market yesterday, and experts said it was possible that the Thai currency would depreciate to around Bt41 a US dollar this week.

Commenting on the country's trade and current accounts status, the Thai leader said he believed the country would eventually not face any trade or current account deficit, or the deficit would be minimal, due to good prospects of exports and domestic investment.

--TNA 2005-06-14

[plachon]

Ever the optomist...................