Japanese turnaround 'should boost Thai growth'

The Japanese economic recovery will serve as an impetus for Thailand's growth this year, according to Kasikorn Research Centre.
It said Japan was expected to see stronger growth in consumption and investment this year, so there would be greater demand for Thai goods. Japan is Thailand's biggest trading partner and the country's largest foreign investor. Last year the top 20 Thai export items to Japan accounted for more than 55 per cent of the Kingdom's total exports. Thai exports to Japan last year increased 12 per cent from the previous year. Shipments of integrated cir-cuit boards, computers and computer parts, rubber, automobiles and automobile parts, electrical appliances, plastic and aluminium products, among others, will probably see stronger growth rates this year, according to the centre. The export sector accounts for more than 50 per cent of Thailand's gross domestic product, which is projected to grow by 4-4.5 per cent this year. Thailand and Japan had been scheduled to sign a trade pact in April, which was put off due to the April 2 Thai general election. According to an earlier ar-rangement, the leaders of the two countries had been due to sign the free-trade agreement on April 3, with the pact to go into effect in October.
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