May 26, 2008
BANGKOK - The Thai economy expanded by 6.0 percent in the first quarter of the year, bolstered by increased consumer spending and a stimulus package from the government.
Increased productivity in manufacturing and farming, as well as growth in tourism and financial services also helped drive the economy, said Amphon Kittiamphon, secretary general of the government's economic think tank.
"This year, the Thai economy grew by 6.0 percent in the first quarter, compared to growth of 4.8 percent for 2007," Amphon told reporters.
The National Economic and Social Development Board still expects whole-year growth to be 4.5-5.5 percent this year, according to AFP.
But Thailand's trade surplus will likely shrink as oil imports become more costly.
"The Thai economy this year is still at risk from high oil prices, which leads to higher inflation, as well as rising prices for food and basic commodities," Amphon said.
Political concerns could also weaken consumer and business confidence, as small street protests have started breaking out over an intense national debate over constitutional amendments.
