BoT maintains GDP forecast

The Bank of Thailand (BoT) will not adjust its projected gross domestic product (GDP) for 2009 after Prime Minister Abhisit Vejjajiva said it could shrink by three to five percent, BoT deputy governor Bandit Nijthaworn said on Wednesday.

The BoT expected to see a 1.5 to 3.5 per cent contraction in this year's economic growth.

The overall economy is still sluggish and volatile even though the downturn appeared to ease in April due to higher export growth, Mr Bandit said.

He said the economy during the next two months must be closely monitored.

The BoT would continue implementing its policy on economic recovery, he said.

He said the central bank had not spent its international reserves to stimulate the economy, but it could still be used depending on the global economic situation.

Mr Bandit said he agreed with Finance Minister Korn Chatikavanij's idea to attract more foreign companies to invest in Thailand by allowing them to hold more than 19 per cent of the shares.

He said the plan would add more value to the Thai business sector and it would likely be carried out by this year's end.