World Business

Thai PM says economic growth may fall to 6% in Q2

(Xinhua)
Updated: 2010-06-07 11:36

HO CHI MINH CITY - Thai Prime Minister Abhisit Vejjajiva said here on Sunday that Thai economy may grow at 6 percent year-on-year in the second quarter as compared with 12 percent in first quarter.

It is the loss to the economy by the recent political unrest that started in March, said Abhisit when meeting the press on the sideline of the ongoing 19th World Economic Forum (WEF) on East Asia.

Thailand registered one of the world's fastest growth rates in the first quarter. It implied the strong momentum of Thai economy, said Abhisit.

Abhisit admitted the political instability has hurt the foreign tourist arrival and the tourism sector, a backbone industry of the country.

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The performance of Thai economy in the second quarter and the rest of this year will much depend on how Thailand brings back tourists and investors, he said.

Abhisit said Thailand is fixing damages caused by the recent political unrest as swift as possible. The government is targeting sectors affected and offering compensation packages to shops and employees.

Abhisit said Thai government's stimulus policy will be implemented throughout this year and possibly for the next two years. The country will continue to improve infrastructure.

"Despite political differences in Thailand, Thai parties and Thai peoples are always committed to a market economy and open up, " said Abhisit.