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| Finance Minister: Thai Econ to Contract 3% This Year |
| UPDATE : 23 March 2009 |
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The Finance Minister projects that Thailand’s economy is likely to shrink 3 per cent following the global economic crisis, but insists that the government will increase public debt carefully and transparently to help improve the economy.
The worse-than-expected economic recession worldwide has caused Finance Minister Korn Chatikavanij to announce that Thailand’s economy could decline by 3 per cent in 2009, down from earlier estimations of between zero and two per cent. The government’s stimulus policies have also been taken into account for the projection.
In the case of the government policy failing to save the ailing economy, Korn said the economy could be slashed by 8 to 9 per cent and more than 2 million workers could lose their jobs.
He added that the government must inform the public of these facts, in order to build cooperation between the state and private sectors to alleviate the crisis. Furthermore, it will have to raise more public debt to supervise the economy, but cautious and transparent distribution of the budget is also imperative.
The Finance Minister revealed that the government is conducting its budget plan for fiscal 2010 which is likely to continue running in a budget deficit, at the same time as trying to implement a law allowing the state to use the two-and-three digit lottery income, totaling 17 billion baht, to stimulate the economy.
Meanwhile, President of MFC Asset Management Pichit Akrathit commented that most economists have predicted that Thailand’s economy will experience a severe decline this year due to a sharp drop in exports, and the government should therefore speed up investments in long-term infrastructure development projects, to create employment.
Earlier, the Fiscal Policy Office estimated the expansion of the Thai economy for 2009 at 0 to 2 per cent. The agency is planning to revise the estimation again this month due to a dramatic drop in January exports.
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