Thailand GDP growth expected to be above 6%

Thailand GDP growth expected to be above 6%

Thailand's Prime Minister Thaksin Shinawatra today lowered the country's 2004 economic growth target to above 6%, after setting targets of 8% and then 7% earlier this year. The reduction in the GDP growth rate is stated to be a result of slow growth in the second quarter due to high oil prices, extreme violence in southern Thailand and the bird flu epidemic, which all took a toll on consumer and business confidence. The general downturn in the international economy is also said to be a factor in the government's downgrading of the country's GDP growth rate. However, according to Shinawatra, as long as the global economy maintains its current performance level, Thailand's exports will continue to play a key role in accelerating the country's GDP growth this year, even despite high oil prices. Thailand's exports rose 11.1% in the second quarter, however imports grew at an even quicker 17.6%, due to rising oil prices and increased demand for capital good from companies making new investments. In the first half of this year, the country's net exports decreased by 13% but the country is still expected to finish the year with a current account surplus as a result of earnings in the services and tourism sectors.