Thailands gross domestic product will expand five pct this calendar year up from 3.8 pct in 1986 despite a projected slight decline in agricultural output due to drought the Bank of Thailand said. Central bank spokesman Siri Karncharoendi told reporters the Thai economy clearly recovered in the first quarter from the lingering effects of the 1984-85 recession. He said the industrial sector is expected to expand 5.5 pct this year up from five pct in 1986. Agricultural output is projected to grow 2.8 pct after 1.5 pct contraction in 1986. He said January/March imports grew 19.2 pct to 70.7 billion baht in response to an improving domestic market compared with a nine pct decline to 59.3 billion a year ago. Non-oil imports grew 24.8 pct to 60.2 billion baht while oil imports declined 5.6 pct to 10.5 billion. First quarter exports increased 12.7 pct to 63.2 billion baht compared with 14.4 pct and 56.1 billion a year ago. Siri said he expects the trade deficit to widen to about 30 billion baht this year from 17.4 billion in 1986. The current account which last year posted a surplus of 3.5 billion baht is projected to return to a 7.4 billion deficit in 1987. He said overall January/March lending by the Thai banking system grew a strong nine pct to 577.9 billion baht up from 4.7 pct growth in the previous quarter and 5.8 pct for the whole of 1986. He said the Thai consumer price index rose 1.8 pct in the first quarter down from 2.3 pct a year ago but added that with the economy picking up inflation is expected to rise to 2.5 pct this year from 1.9 pct for the whole 1986.
THAI ECONOMY TO ACHIEVE FIVE PCT GROWTH THIS YEAR