The International Monetary Fund (IMF) forecasts Thai economy to contract 2-4% in 2009
BANGKOK, April 4 (TNA) — The International Monetary Fund (IMF) has forecast that Thailand s economy will contract between 2-4 per cent in 2009 due to the global economic meltdown, but that it will wo…
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IMF forecasts Thai economy to contract 2-4% in 2009
Implementation of Reforms in Thailand
Recent crashes in Thailand’s GDP and export markets, plus the drop in tourism fuelled by recession and last year’s domestic political turmoil, have dispelled illusions that the country is insulated from the effects of the global downturn. Numerous indicators of economic health are hitting the red, foreign investment is evaporating, unemployment is surging, and credit lines are freezing up. Thailand’s government still says there is a possibility of positive growth this year, despite facing a rougher ride than in the 1997 Asian financial crisis as conditions infest the real economy on a broader scale.
Thailand continues to reduce import tariff rates for various products.
IMF forecasts Thai economy to contract 2-4% in 2009
Many of these tax privileges were scheduled to expire at the end of this year, but now extended for another one to three years, depending on whether such tools and equipment can be currently locally produced. The government also cancels many parts and components required in assembling chasses used in vehicles that are fueled entirely by natural gas.
External stability in Thailand was upheld by high international reserves, while trade and current account were close to balance. Regarding internal stability, inflation rose from last year in line with higher oil prices, despite a downward trend during the second half of the year. Unemployment rate remained low in Thailand in 2008 but employment started to deteriorate in the forth quarter, particularly in the production sector affected by economic slowdown.
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