May 1, 2009
BANGKOK (AFP) - Thai premier Abhisit Vejjajiva said Thursday that the economy was expected to shrink by more than five percent in the first quarter due to lower tourism revenue following political chaos.
Abhisit said the country was already battling the effects of the global economic crisis and would continue to use fiscal stimulus measures to fight the downturn.
"Poor tourism figures have caused the Thai economy to plunge and growth is now expected to fall by over five percent in the first quarter," the prime minister told a seminar of government officials.
The Bank of Thailand later supported Abhisit's prediction, saying a contraction of between five and six percent in the first quarter was likely.
Revenue from tourism and exports had collectively fallen by an estimated 24 to 25 percent in the first quarter, Abhisit said.
The usually lucrative sectors have struggled since mid-2008 when a group of protesters seeking to oust the then-government loyal to former premier Thaksin Shinawatra took to the streets.
The group plunged the kingdom into turmoil in late November by seizing Bangkok's airports for nine days.
Following a change of government in December pro-Thaksin demonstrators launched a campaign that led to the storming of a regional summit on the Thai coast and deadly street riots in Bangkok in mid-April.
The Thai government has already announced plans to spend billions of dollars to stimulate the economy, with large infrastructure projects planned.
Last week Thailand's central bank slashed its projected growth figure, saying the economy could shrink by as much as 3.5 percent this year.
