The government will place greater emphasis on the agricultural, food and alternative-energy sectors in driving future economic growth, Prime Minister Abhisit Vejjajiva said yesterday.
In a speech to a seminar hosted by Kasetsart University, the premier said he was optimistic the Thai economy could expand as much as 4.7 per cent this year, in line with International Monetary Fund forecasts.
Earlier, the government predicted growth of 3-3.5 per cent in this year's gross domestic product after the economy contracted 2.7-2.8 per cent last year.
Key engines of economic growth, including exports and tourism, began recovering in last year's fourth quarter. This year's exports are forecast to grow 14 per cent, while international tourist arrivals could reach 15 million after a big recovery started last December.
In that month alone, the number of foreign tourists in Thailand reached a high of 1.6 million after the previous months saw a sharp contraction. Full-year tourist arrivals topped 14 million.
In addition, the number of jobless has dropped to only 1 per cent, from a high of 800,000 workers to between 400,000 and 500,000.
To drive the country's longer-term economic growth, the government must focus on modernising the farm sector while promoting food and alternative energy even more.
Abhisit said the Cabinet would consider new land and property tax legislation this month in a bid to improve land use throughout the Kingdom.
Second, the Natural Resources and Environment Ministry will conduct a new survey of land plots and use nationwide.
Third, communities will hold land-title deeds, while a new land bank will redistribute land ownership and increase efficiency in land use nationwide.
"In tackling the economic issues, there are three major obstacles. First, competitive pressures have increased [in the wake of the 2008-09 global and US economic crises]. Second, corrupt practices have become more complicated [thus undermining economic development]. Third, there remains a domestic political rift," he said.
However, he said the strengthening purchasing power of farmers and others in the agricultural sector, due to higher crop prices, would help drive economic growth in the first quarter.
Besides the recoveries in the export and tourism sectors, Abhisit also suggested private investment would rise this year, because capacity use in the industrial sector was now as high as 70-80 per cent. This means the private sector must make new investments, especially in the electronics sector.
