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Thailand's Ministry of Finance decreases economic growth projection.

Asia Africa Intelligence Wire

| September 01, 2005 | COPYRIGHT 2005 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From Thai Press Reports)

Section: Economy - The Fiscal Policy Office (FPO) has revised its economic growth estimate for this year downward to 4.1-4.6 per cent, from 4.6-5.1 per cent projected earlier, upon the continued rise in fuel prices.

Somchai Sajjapongse, Deputy Director-General of FPO, said in his capacity as the Finance Ministry's spokesman that the office needs to decrease the economic growth projection given higher global crude prices and the country's economic expansion of only 3.3 per cent in the first half of this year.

However, it forecast the Thai economy in the second half of this year would outgrow that in the first half since many economic indicators, including the manufacturing production index, farm output index, tourism and employment had improved.

As well, the government's move to set aside budget to stimulate the economy and its planned investment in mega-infrastructure projects would also help boost the Thai economy in the second half of the year.

He said the current account would be in surplus of around US$1.2-2.2 billion in the second half against a deficit of US$6.2 billion in the first half, resulting in an expected deficit ...

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