At a meeting yesterday with institutional investors, Prime Minister Abhisit Vejjajiva gave assurances that Thailand's economy would expand at least 6 per cent.
He made the remark to more than 20 institutional investors led by Thanachart Securities at a meeting held to update them on the political situation, which, along with the European debt crisis, is a major risk factor for investment in the second half of the year.
Thanachart managing director Asawinee Tailangka afterward said the premier was confident of 6-per-cent growth in gross domestic product this year despite the political turmoil between March and May, which could affect GDP in May, June and July.
The Kingdom recorded 12-per-cent GDP growth in the first quarter.
Abhisit is also convinced the number of tourist arrivals will surpass 14 million this year.
The PM told the meeting that while the country's economy had recovered strongly from the political turmoil and global financial trouble, the tourism industry had suffered the most. Therefore, the government has devised many measures to assist tourism businesses.
He attributed the good expansion in the first half to rising exports and said the momentum could be maintained if the European debt crisis did not have a more serious affect.
Abhisit affirmed the government would not seek Bt400 billion worth of loans after all, because investment projects under the Thai Khemkhaeng stimulus scheme which were to be financed by the loans had now been put into the fiscal-2011 budget. Meanwhile, the policy rate is being kept low for the moment, to support economic growth.
He also said it would be easier to attract foreign tourists once domestic tourism picked up.
Abhisit said progress had also been made in rectifying the Map Ta Phut fiasco. Many projects had been allowed to resume construction or operations, and he believes the government can still attract giant firms to Thailand.