BOT : Thai economy resilient

"All countries have encountered the world crisis, but we have good things to help boost the economy," senior director Amara Sriphayak said after meeting with an IMF delegation on its annual visit.

The government's economic stimulus packages as well as improved net exports and drop¬ping prices of goods and serv¬ices were the positive factors for the economy, she said.

She declined to disclose the details discussed with the IMF, saying the revised economic projection would be released on April 22.

The Kingdom asked for financial assistance from the IMF and central banks during the 1997 economic crisis. The country, however, could repay the debts ahead of schedule.

Amara said fiscal policies were the key to boosting domes¬tic demand and economic growth.

The threeyear economic stimulus package worth Bt1.4 trillion would work wonders for the country although it would be a brushedup plan.

It would restore confidence and reinvigorate domestic demand, she said.

"After the government rushed the measures to boost the economy in the short term, it should now introduce meas¬ures for the long haul," she said.

The central bank supports the government's plan to lift the public debt ceiling of 50 per cent for three years because fiscal policies were the key propellant for the economy, she said.

Markets expect that the global recovery would not emerge this year but in a few years. The central bank has pro¬jected the world's economy would pick up at the end of this year.

Net exports improved in January when exports contracted by 25.3 per cent, but at a slower pace than imports, which shrank by 36.5 per cent.

In December, exports fell 15.7 per cent short of the previ¬ous year, compared with a 8.8percent drop in imports.

This indicates that the trade deficit has improved, resulting in rising foreignexchange income.

Prices of goods and services have declined significantly, thanks to dropping oil prices. This has helped to ease the cost of living and replenish pur¬chasing power, she said.