2009 GDP target improved

 Somchai Sajjapongse, director-general of the office, said on Monday that the 2009 contraction is revised from minus 2.5-3.5 per cent on expectation that the economy would show growth in the third and fourth quarters. The gross domestic product (GDP) in the fourt quarter is expected to grow 3-4 per cent, against minus 3-4 per cent in the third quarter and minus 6 per cent in the first half.

 "Thanks to public spending and stable political condition, the 2010 GDP should grow in the range of 2.5-4.1 per cent," he said.

 Private consumption and investment remains the risk factor, though. Meanwhile, the oil price is in concern, as every US$1 increase in oil prices would pull down the GDP by 0.2 percentage point. Meanwhile, every Bt1 appreciation in the Thai baht against US dollar would pull down the GDP 0.3 percentage point. Every Bt100 billion public spending under Thai Khemkhaeng package would add 0.4 percentage growth to the GDP.