The economic policies promoted by the government have laid the groundwork for growth rooted in domestic consumption. The country has been better insulated as a result from some of the external shocks that have affected its regional neighbours.

     And as shocks go, the war in Iraq and the panic caused by Sars did their share to put a damper on optimism in the first half of the year. Thailand's heroic consumers held on to their wallets more tightly until they could gauge how great the impact would be.  

    As it turned out, most sectors of the economy rode out the two storms, with the exception of tourism, an industry heavily dependent on the confidence of travellers worldwide.     

    Other economic sectors are adjusting their success strategies to tap growing domestic markets while adapting to tougher challenges abroad, be they trade barriers in the developed world or low-cost competitors in China.

    Against this backdrop, Thai policymakers retain their confidence that the economic growth momentum will be sufficient to lift gross domestic product by as much as 5.5% this year.     

    It may not be the 6% that Prime Minister Thaksin Shinawatra has been seeking, but by comparison to the performances of other countries in the region and worldwide, Thailand can confidently lay claim to being what one US economist called ``the shining star'' in Asia this year.  

    In the 2003 Mid-Year Economic Review, we examine what the public and private sectors have been doing to lay the groundwork for sustainable growth, with commentary from senior executives about their strategies for success.