Thai PM planning to withdraw B800bn stimulus package

The premier made his comments yesterday during a discussion in Bangkok on the political and economic future of Thailand organised by Post Today.

Mr Abhisit said that as figures were clearly reflecting an economic recovery, his government was about to review its 800 billion baht borrowing plan and map out an exit strategy from its borrowing-based stimulus measures.

He said the national economy contracted by 7.1% in the first quarter of last year but it is now growing. About a million people were unemployed last year but the number has dropped to 400,000-500,000, he claimed.

Tourism shrank by 20-30% last year but government figures showed 1.6 million arrivals in December.

Exports were previously in decline, but are now growing, Mr Abhisit said, adding that the government's annual income is now on track to exceed targets by almost 200 billion baht.

"These figures confirm that we are entering a moment of true economic recovery," Mr Abhisit said. "The borrowing of 800 billion baht must be reviewed to see if it is still necessary. The government wants monetary and financial conditions and public debt back to normal as soon as possible without affecting the economic recovery."