Economy back on track: Surayud

Ten years almost to the day of the 1997 financial crisis, Surayud reassured the country the economy had regained stability. Full year growth is now projected to be between 4 per cent and 4.5 per cent.

Exports in May are up 20 per cent from the same period last year, he said, making it one of the engines of growth.

The prime minister added that investment was picking up due to improved sentiment following the recent signing of an economic partnership agreement with Japan.

More Japanese companies are considering spending in Thailand, he said, adding the government had resolved "to a certain extent" environmental problems in Rayong province. This will see spending by local companies increase, too.

A 4-per-cent across-the-board pay hike for government employees in October will give domestic consumption a kick start, he said. The rise is costing the state Bt17 billion. This will lead to increased spending that will stimulate economic growth, he said.

He believed all major engines of economic growth would be back at full speed in the coming months.