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[TheYenta]

As recently as three days ago, the Deputy Pm was saying that Thailand would continue to enjoy steady but low economic growth. Now, the Finance Minister says a recession is already here.

"Thailand will experience negative economic growth during the first quarter this year, Finance Minister Korn Chatikavanij revealed yesterday. This was due to the poor performance of the economy in the last quarter of 2008, Mr Korn said at the Post Today Investment Expo 2009 yesterday. However, he expected the situation to pick up by the end of the first quarter and the beginning of the second quarter this year.

The economic recovery would be a result of easing political tension coupled with the effect of the government's economic stimulus package worth over 116 billion baht. The package is pending parliament's approval on Wednesday, Mr Korn said.

In April, when money injected into the economy reached consumers, overall purchasing power was expected to sharply increase and tourism and industry would improve a few months later, he said.

Mr Korn added the Finance Ministry would seek approval from the economic ministerial committee next week on plans to offer a loan guarantee measure to commercial banks, to encourage institutions to provide loans in the private sector."

http://www.bangkokpost.com/news/local/1118...negative-growth