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[TheYenta]

"The plunge in Thai economic indicators for October and November show the precariousness of the economy, warned local economists. Odds are rising that the Thai economy could underperform the Finance Ministry's growth target of zero to 2 per cent for 2009 and fall into an outright contraction. . .

Thai economic indicators, meanwhile, were very bearish in November, with manufacturing contracting 6 per cent and tourism 20 per cent year-on-year. Farm income growth slowed to just 3-4 per cent year-on-year.

"There is broad agreement that both monetary and fiscal policies should be expansionary as inflation is no longer a problem. And we need to keep our politics steady because the crisis has arrived right at our door," Dr Kobsak said. He said the government should ensure it has adequate stimulus spending to shore up the economy.

"For now, the government should forego fiscal discipline. And it should begin with accepting the reality that the economy is in a precarious state. Too much is better than too little," he said.

Porametee Vimolsiri, a senior adviser for the National Economic and Social Development Board, said the global economy has deteriorated quickly, with growth in 2009 now forecast at zero to 0.5 per cent compared with a 2-2.5 per cent forecast last November. "Indicators in October and November, particularly exports, showed that the Thai economy nosedived. Negative momentum has affected production and consumption. People have become more worried about deflation and the economic recession," he said."

http://www.bangkokpost.com/business/econom...thai-slump-rise