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Thai finmin sees 2010 GDP growth at 4.5 to 5 pct

Published 05/11/2010, 10:42 PM
Updated 05/11/2010, 11:00 PM

BEIJING, May 12 (Reuters) - Thailand's 2010 GDP should grow by 4.5 to 5 percent, but noted the ongoing political crisis could shave 0.3 percent off the growth target, its finance minister said on Wednesday.

During a visit to Beijing to meet Chinese officials, Korn Chatikavanij also said he expected first quarter GDP to have grown by 9 percent from a year ago.

Thailand's gross domestic product is about $260 billion, making it southeast Asia's second-largest.

The Finance Ministry has previously forecast the export-driven economy will grow 4.5 percent this year, but Korn told Reuters on Wednesday: "I always thought it was a little conservative. So if we can find a resolution (to political problems), and it looks like we will in a reasonable timeframe, we should have no problems in achieving that (target)."

Korn said that once the political crisis is resolved, he expected the central bank to raise interest rates. He did not offer a timeframe, but the next rate setting meeting is scheduled for June 2.

($ = 32.3 baht) (Reporting by Lee Chyen Yee and Lucy Hornby; Editing by Ken Wills) (See www.reutersrealestate.com for Reuters' global service for real estate professionals)

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