Saturday, October 27, 2007

Thailand's economic growth to meet 5% target in 2008

BANGKOK, Oct 26 (TNA) -- Despite rising oil prices, Thailand's inflation rate is expected to remain low while its economy is projected to sustain growth and meet the government's target of 5 per cent in 2008 due to massive investment on new electric rail lines here, Finance Minister Chalongphob Sussangkarn said on Friday.

Inflation in Thailand has not risen much and now stands at slightly over 1 per cent, still lower than 3.5 per cent set by the government, said Mr. Chalongphob.

This shows that inflation rate in the country has not been affected by increasing oil prices, he said.

The world economy, including that of Thailand, is expected to withstand the impact of soaring global oil prices as the central banks in each country must try to contain inflation in their economies from rising greatly, he said.

Touching on prospects of the Thai economy in 2008, Mr. Chalongphob said the government was confident that the combined investment of about US$3 billion on construction of three new electric train lines in Bangkok next year would help drive the country's economy and compensate exports which have become sluggish, he said.

The finance minister said he was optimistic that economy in 2008 would meet the government's target of 5 per cent due to massive investment. (TNA)-E111

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