Thailand forecasts 10 percent export growth in 2001: Minister

Thailand forecasts 10 percent export growth in 2001: Minister

BANGKOK (AFP): Exports will be the main engine for Thailand's economic recovery, the commerce ministry said as it forecast the value of exports to grow by 10 percent next year to US$74 billion, reports said Saturday.

Deputy Prime Minister and Commerce Minister Supachai Panitchpakdi said meeting that figure would be a challenge given the baht's continued weakness and high oil prices, The Nation reported.

"The 10 percent growth projection for next year is quite high considering the 15 percent growth this year to $67 billion. We have to try harder than this year due to the continued weakness of the baht," he said.

Soaring oil prices are also a key factor affecting production costs, he said. Lacking any natural reserves, Thailand is totally dependent on oil imports.

Export growth would be the main engine of economic recovery until domestic consumption picked up and the financial sector sorted out its problems, the Bangkok Post reported Supachai as saying.

Thailand's recovery from the regional economic crisis of 1997 could be in danger if oil prices did not ease by the first quarter of next year, Supachai said.

Earlier gross domestic product forecasts of 4.5-5.0 percent growth might have to be scaled back to 4.1 percent due to soaring oil costs.

Thailand is aiming to increase by 15.1 percent exports to fellow members of the Association of Southeast Asian Nations (ASEAN). Exports to the United States and the European Union are forecast to grow by seven percent while those to Japan are seen climbing 5.5 percent next year.

ASEAN could in the future replace the U.S. as Thailand's largest export market, Supachai said, according to the Post.