Kosit: 2009 GDP to fall 3%

Bangkok Bank executive chairman and former industry minister Kosit Panpiemras expects gross domestic product to shrink by three per cent this year due to the country's export slump and the global economic crisis.

He said on Wednesday that the economy would start to move in a positive direction in the fourth quarter of 2009.

"The sluggish economy made the private sector afraid of raising its production output while public spending also contracted.

"The government should try to spend more to drive the economy," Mr Kosit said.

The country is primarily relies on exports, which accounts for 70 per cent of the GDP, and the country would overcome the crisis when the global market recovers, he said.

"It is time for the country to restructure its economy and reduce export dependency even if it may take some time," he said.