Economic and Financial Market Developments

Economic Developments in 2006

In 2006, the Thai economy expanded by 5 percent, accelerating slightly from 4.5 percent in 2005. Strong export growth was the main growth engine of the economy in 2006, while domestic demand decelerated due to several negative factors, including oil price hikes, unrest in the southern region, prolonged and severe floods, and political uncertainty. On external front, the current account balance returned to a surplus, due to improved export performance, the slowdown in imports in line with domestic demand, and considerable expansion in the tourism sector.