BANGKOK, April 30 – Thailand’s gross domestic product (GDP) is expected to grow less than 4 per cent in the first quarter of this year due to a slowdown in the production sector, according to Metha Supapong, Director of the Bank of Thailand’s Domestic Economy Department.
Although the economy in the fourth quarter of last year enjoyed impressive growth due to higher agricultural product prices, increased budget disbursement, and record export growth at 27.4 per cent, the production sector including computer parts and vehicles begun to grow at a slower pace in the wake of the natural disasters in Japan.
In addition, significant GDP growth of up to 12 per cent in the first quarter of 2010 put pressure on economic conditions in the same quarter of this year.
He said that vehicle production in March dropped to 10,000 units and is expected to decrease rather considerably, perhaps by half. However, it would return to normal in July.
The tourism sector grew 15.8 per cent despite impacts of the natural disasters in Japan and severe floods in the southern region. The number of tourists increased to 5.3 million or 15.8 per cent. Most tourist arrivals were from Europe and Asia. (MCOT online news)