Thailand's army-installed premier on Wednesday reassured investors that the Thai economy is on track to grow by up to 4.5 percent this year, and insisted the country is headed back to democracy. Prime Minister Surayud Chulanont said despite slowing exports, the Thai economy is expected to grow by 4.0 to 4.5 percent in 2007.
The economy expanded by 4.3 percent in the first six months with strong contributions from exports of goods and services. The figure was among the lowest in Southeast Asia. "Exports will remain the key driving force, although a slowdown is foreseen due to prevailing global economic risks," Surayud told 270 fund managers at an economic conference in Bangkok.
At the same time, softening private investments and consumption are still in a "transition period," he said, but voiced confidence that they were starting to turn around. Following a contraction of 2.3 percent in the first quarter, private investments expanded by 0.2 percent in the three months to June, Surayud said.