Thai Economy experiencing continued growth due to exports.

The growth experienced by Thailand’s economy exceeding has economists’ estimates as it has expanded at its fastest pace in two years, driven by exports of rice, computer chips and cars.

In the fourth quarter growth was marked at 5.7 percent, a 0.9 percent on the third quarter, as overseas shipment increased by a staggering 24 percent from the last quarter.

The end of military rule has seen a period of stability that has secured consumer confidence. The newly elected PM Samak Sundaravej has pledged to increase budget spending.

Despite fears that the strength of the Thai baht may hurt exports, Ramya Suryanarayanan, an economist at DBS expects the Thai economy to expand by 5.6 percent this year. This strong growth is “supported by pick-up in investment, consumption and exports.”

Record exports worth $14.6 billion were recorded in November due to high demand from China and Eastern Europe, although it is believed that the export boost may waver if the US does recede into recession.

The importance of the US is revealed in the 2007 export figures, as the country topped the list buying 12.6 percent of Thailand’s exports for the year, followed by Japan’s 11.9 percent and China’s 9.7 percent.

It is predicted that assuming exports remain constant Thailand’s economy is expected to grow between 4.5 percent and 5.5 percent this year according to government officials.

Story link: Thai Economy experiencing continued growth due to exports.