Thai Econ Shrinks 3.5% in Q4/2008 Thursday, January 29, 2009 12:00 AM        The Thai economy shrunk more than 3 percent in the fourth quarter last year due to the global financial crisis and a slowdown in domestic consumption. The Fiscal Policy Office says the figure is likely to stay in the red in the first quarter this year. It expects the government's stimulus package could shore up the economy. The Finance Ministry's Fiscal Policy Office or FPO reported the expansion rate of Thailand's Gross Domestic Product or GDP for the fourth quarter of 2008 at minus 3.5 percent, a consequence of the weakening global economy causing lower exports and declining private consumption and investments inside the country. FPO Director-general, Somchai Sujjapongse admitted that Thailand's GDP is likely to continue to shrink in the first quarter this year if the allocation of the state's fiscal budget is delayed. He says the government must enhance the economy by using fiscal and monetary measures, as well as weakening the baht to raise the nation's competitiveness in trade and to prevent a higher current account deficit. Somchai said the agency predicts that the inflation rate is likely to slump in January following a nosedive in petroleum prices, and then pick up in February when the excise tax rate for oil increases. He assured that motorists would not be affected by the lift of the oil excise tax cut measure, because the government will subsidise oil prices to keep them from jumping too much. Despite concern that Thailand could suffer from deflation in 2009, FPO Director-General said it might be just technical deflation, which is nothing to worry about. The FPO also announced other significant economic indicators for the fourth quarter last year. The unemployment rate remained low at 1.3 percent of the total labour force. The state's revenue dropped 16.1 per cent, while its expenditure rose 2.8 percent. Public debt was 37 percent of the GDP in November, while the framework of fiscal discipline says the figure should not exceed 50 percent of GDP. The country's international reserve was 111 billion U.S. dollars as of December, four times higher than its short-term external liabilities. From http://www.thailandoutlook.tv/toc/ViewData.aspx?DataID=1011911 Tuesday, September 07, 2010 4:06 AM http://www.thailandoutlook.tv/