National Office Predicts Economic Growth In 2006 By 4.5 - 5.5 Percent

NATIONAL OFFICE PREDICTS ECONOMIC GROWTH IN 2006 BY 4.5 - 5.5 PERCENT

The Office of the National Economic and Social Development Board (NESDB) has predicted that the economic growth of 2006 will be around 4.5 -5.5 percent, adding that oil imports are still high and may disrupt the trade balance by as much as $10 billion dollars.

Mr. Ampon Kittiampon (อำพน กิตติอำพน), the Director of the Office of the National Economic and Social Development Board, commented on the economic direction that Thailand was taking in 2006, and estimates annual growth of 4.5- 5.5 percent, figures which were derived from the Office's December 2005 economic growth notation of 4.7- 5.7 percent. The main influence on the economic growth figure is apparently the rising oil prices, which are set to rise even higher this year. In addition the quarrel between the United States and China may slow Thai economic growth even further.

The director expects that a trade balance deficit of $10 billion dollars may occur if oil importation trends continue, with current trade deficit now standing at $4 billion dollars, or about 2 percent of the nation's GDP. A further debt deficit of 3.5 - 4.5 percent is also being reported.

Mr. Ampon adds that the government should conduct a policy of energy conservation, and push for exports to reach 17-18 percent, with special emphasis on products which will boost the economy.

Source: Thai National News Bureau Public Relations Department - 06 March 2006