Thailand's ailing economy seen to recover in 1999

Thailand's ailing economy seen to recover in 1999

BANGKOK (AFP): Thailand's ailing economy will recover in 1999 with the country's plunging currency stabilizing at between 35 and 36 baht to the dollar, officials were quoted as saying Saturday.

The forecast from the National Economic and Social Development (NESD) board came as the embattled economy, which sparked Asia's regional financial crisis, sank to a new low point as its currency crashed to more than 45 to the greenback.

NESD secretary-general Wirat Wattanasiritham predicted that the now hobbling Thai economy would enjoy economic growth and an inflation rate of just four percent between 1999-2001, according to the Bangkok Post.

Thailand is weathering its worst economic storm since World War II, a malaise which spread across the region after the shock effective devaluation of the Thai baht in July.

The country is expected to record close to zero growth in 1997 and 1998, while inflation is currently at 7.6 percent and is forecast to rise to 10 percent next year, the board's report said.

Average inflation will run at an average four percent until 2000, while the current account deficit will stand at 1.8 percent of gross domestic product (GDP) next year and at 3.2 percent over the three-year period, it said.

The board said that average annual economic growth would be at 4.2 percent until 2000, while there "would be none in the current fiscal year."

But Wirat stressed that his predictions were based on world economic growth forecasts, which analysts have warned could be hit if the Asian turmoil spreads across to Japan and then the United States and Europe.