Thailand revises up GDP growth for 2010 to 5-6 pct

The Fiscal Policy Office (FPO) at Thailand's Ministry of Finance has revised up its 2010 economic growth projection from 4-5 percent to 5-6 percent year-on-year on the back of substantial expansion in the country's exports, a senior official said Tuesday, the Bangkok Post's website reported.

FPO director Sathit Rangkasiri said the revision of the economic growth data was based on the sharp gross domestic product 's (GDP) expansion of 12 percent in quarter 1 (Jan.-March), 2010.

The faster-than-expected recovery in global economy, especially the Thai trade partners, has largely boosted the country's exports, Sathit explained.

A recent forecast by Wisit Limprana, chairman of the food industrial group at the Federation of Thai Industries (FTI), has reflected the FPO office's latest view.

On June 24, Wisit disclosed Thailand's 2010 food exports are projected to expand by at least 10 percent to about 82 billion baht(2.533 billion U.S. dollars).

Rice, chicken, white sugar, and tapioca are leading food products that are of high value to the country, Wisit said.

In addition to that, Thailand's internal spending, including domestic consumption and private investment, had significantly grown compared to the last year's, the FPO director said.

The FPO office expected the Thai GDP will expand by about 5.6 percent in quarter 2 (April-June) of 2010, Sathit said.

Meanwhile, the FPO office adjusted its targeted inflation rate for 2010 from four percent to 3.5 percent as the government has still extended relief measures for low-income earners.

Source: Xinhua