Thai fundamentals 'remain sound'

[Admin]

Thai fundamentals 'remain sound' 
Bangkok Post: 26 May 2010
Fundamentals remain sound, says Kiat

The growth outlook for the Thai economy is still promising this year because of strong fundamentals and robust exports, despite the debilitating impact of political unrest, says the Thailand Trade Representative Office (TTR).

Healthy economic growth in the first quarter and steady export improvement signalled the potential for continued expansion, TTR president Kiat Sittheeamorn said in an address yesterday to the Foreign Correspondents Club of Thailand (FCCT). The Thai economy posted its strongest growth in 15 years in the first quarter, rising 12% against the exceptionally low base of early 2009, when GDP contracted by 7.1%. Exports rose 31% in January, 23.1% in February and 40.9% in March.

According to Mr Kiat, trade agreements with Asean and dialogue partners such as China, Japan, India, South Korea, Australia and New Zealand would also help expand Thailand's trade in the region.

Farm prices are also expected ton remain strong thanks to state crop price insurance, despite the effect of widespread drought.

"Most economic sectors remain in good condition except tourism, hotels, and retail, while Thai construction firms that operate overseas are expected to contribute greater income to the country," he said.

The TTR plans roadshows from next month to the US and the EU to explain Thailand's current position and restore the confidence of international communities.

Mr Kiat said the Board of Investment was also considering new promotional packages for investors, particularly special economic zones to promote specific businesses such as the rubber industry.

Under the promotion privileges, experts who come to work in Thailand in high-technology industries or research and development would be entitled to income tax waivers.

http://www.bangkokpost.com/business/economics/37731/fundamentals-remain-sound-says-kiat