Thailand's Commerce Ministry said on Thursday it would maintain the export growth target for 2007 at 12.5 percent as set earlier, while the country's commerce chamber warned of a possible drop to single digit in next year's exports with a strengthening baht.

Thai Commerce Minister Krirkkrai Jirapaet was quoted by Thai News Agency as saying that so far they would not revise the export growth target, because the ministry had earlier assumed that the Thai currency would remain strong at 37 baht against the U.S. dollar.

However, the export target could be revised in the next two to three months depending on how the financial picture unfolds, Krirkkrai said.

The Thai currency further weakened on Thusday following the Bank of Thailand's decision to impose a 30 percent reserve on short-term foreign capital inflows effective from Tuesday, aimed at curbing the appreciation of the baht, which has risen 14 percent since the beginning of this year, allegedly driven by foreign speculation.

Exports in November totalled 11.7 billion U.S. dollars, up 20 percent from the corresponding period last year. Exports during the first 11 months of 2006 grew 17 percent from the same term of 2005 to around 118-119 billion U.S. dollars, according to the Commerce Ministry.

Risk factors which might impact Thailand's exports next year include global oil prices and volatility of major currencies.

The Thai Chamber of Commerce (TCC) in the meantime warned that the country's export growth next year may drop to single digit growth if the Thai baht continue to appreciate below 35 baht to one dollar, according to a report from news network The Nation.

TCC on Thursday urged the government to find a measure to slow down the baht's rise next year, otherwise the export sector, the engine behind the country's economic growth, may lose its price competitiveness.

If the baht appreciated to below 35 baht per dollar, the country 's export growth would range between 7 to 9 percent, TCC said, while it predicted export might grow by 9 to 11.5 percent if the government found a measure to stabilise baht value to above 36 baht to the dollar.

It predicted that economic growth of the Kingdom at 4 to 5 percent next year. The forecast was based on baht value at 36.3 baht agaist the dollar.

Source: Xinhua