"I expect a 3.0-3.5 percent growth," he told reporters on the sideline of the seminar when asked for this year's economic growth projection. In November, he predicted the economy would grow 3.3 percent this year. The government plans to invest 1.43 trillion baht ($43.5 billion) over the next three years from September last year to help Southeast Asia's second-largest economy, which emerged from its first recession in 11 years in the second quarter.
On Thursday, Prime Minister Abhisit Vejjajiva said the $260 billion economy was expected to grow 3.5 percent or more this year on the back of government stimulus measures and the improving global economy. The Bank of Thailand has predicted economic growth of 3.3-5.3 percent this year after a contraction of 2.5-3.5 percent in 2009. It releases new forecasts on January 22.
Signs of recovery have started since the final quarter of 2009 following a rebound in exports and tourism, Korn said. "The fourth quarter should be the first quarter of positive annual growth. Therefore, the economic contraction for the whole year should not exceed 3 percent or maybe at about 2.8 percent," Korn added.
Thailand's economy faced annual contractions for four consecutive quarters. It grew a seasonally adjusted 1.3 percent in the third quarter from the second, growing 2.2 percent in the second quarter from the first. Consumer confidence in Thailand rose in December thanks to a better economic outlook and the extension of certain government subsidies, but politics and the suspension of work at a big industrial estate remained a concern.