The National Economic and Social Development Board (NESDB) of Thailand said Monday the country's economy is expected to show a growth of 4.5 to 5.5 percent this year after having shown a growth of 4.5 percent last year, according to the web edition of the local newspaper Bangkok Post.

NESDB said that Thailand's gross domestic product (GDP) showed a slowdown and grew on a seasonally adjusted basis at 0.9 percent in the fourth quarter as high fuel prices and rising interest rates outweighed seasonal tourism and export recoveries.

The state economic planning agency said that fourth quarter was Thailand's slowest expansion in last year as farm output fell and lower exports hurt manufacturing, prompting the government to cut this year's growth forecast.

The agency said that it was therefore revising down its 2006 projections to 4.5 to 5.5 percent against its past projection of 4. 7 to 5.7 percent, citing the negative impact from the rising interest rates and the higher fuel cost.

NESDB said that the country's trade deficit stood at 272 million U.S. dollars during the fourth quarter after having reported a trade surplus of 746 million U.S. during the third quarter ending September 2005. The fourth quarter deficit was blamed on the higher crude oil prices.

NESDB said that it expects trade deficit for the year to stand at around 9.6 billion U.S. dollars for the year against its previous projection of 11.1 billion U.S. dollars.

The agency forecast a 2006 current account deficit of 4 billion U.S. dollars, against 4.9 billion U.S. dollars forecast in December and an actual 3.7 billion U.S. dollars deficit in 2005.

Imports for the year 2006 are expected to rise by 15 percent, while exports are expected to rise by 15.3 percent in 2006.

The agency also said that growth in the two key sectors that drives the economy, domestic consumption and manufacturing, also showed a slowdown.

The agency also forecasted 2006 inflation of 3.5-4.5 percent, unchanged from its December forecast. Actual inflation last year was 4.5 percent.

Source: Xinhua