Thailand on recovery pace
Floods last year led to the quarterly economic contraction of 5 per cent, which effectively pulled down the annualised economic growth to only 1.1 per cent from 4.5 per cent projection, according to the Fiscal Policy Office.
Somchai Sajjapongse, director-general of the office, said that economic data showed that the worst has passed and the economic recovery should be maintained. This would help the economy to expand 5 per cent as expected.
"The worst is over, reflected through signs of recovery in December. This should allow the economy to expand 2 per cent in the first quarter, 3 per cent in the second quarter, 5 per cent in the third quarter and 7 per cent in the fourth quarter. This would push the annualised growth to 5 per cent," he said.
He noted that the most negative factors are the eurozone crisis and natural disasters following the forecast of La Nina phenomenon in Asia.
"Yet, importantly, economic expansion would be sustained by political stability," he added.
