THAI ECONOMY TO ACHIEVE FIVE PCT GROWTH THIS YEAR
Thailand's 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.
 REUTER
