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Thailand's economy may expand by more than 5% in 2008

Thailand's economy may expand by more than 5 percent in 2008, spurred by exports and government spending, Finance Minister Chalongphob Sussangkarn said.

Shipments will continue to grow at a "double-digit rate" next year, Chalongphob told reporters in Bangkok today. The economy may expand by at least 5 percent this quarter, taking 2007 growth to more than 4.5 percent, he said.

Thailand, Southeast Asia's second-biggest economy, has relied on exports for growth since a military coup last year. Consumer confidence is at a five-year low after sinking every month but two since the September 2007 putsch. The election of a government later this month may revive domestic consumption and state spending.

"Thailand's new elected government will increase spending on large projects to spur growth and meet its promises," Chalongphob said, adding that U.S. efforts to lessen the economic fallout from a housing recession may revive demand for Thai products in the world's largest economy.

President George W. Bush announced an interest-rate freeze for subprime mortgages, saying the slump in the housing market is a "source of concern" throughout the country.