The International Monetary Fund said last month it expects Thailand’s economy to expand 7%-8% this year, while the Asian Development Bank pushed up its GDP growth projection to 5.5% from 4%.

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Thailand’s 2010 GDP growth revised up to 8%

Thailand’s 2010 GDP growth is projected at 3.5%, driven by domestic demand. In the context of weaker global demand in 2010, exports will grow modestly, but the restocking cycle and slow rebound in investment also imply a pick-up in imports, which results in muted net external demand. Public and private investment add 0.8% point to the growth rate, while normal stocking patterns provide a boost to growth of 1.5 % points . Thailand’s Household consumption picks up modestly, adding 0.8 percentage point to the growth rate, whereas public consumption decelerates from 2009 levels but still adds 0.4 percentage point.

Thailand enjoys a strategic location and serves as a gateway into the heart of Asia – home to what is today the largest growing economic market.
The country also offers convenient trade with China, India and the countries of the Association of Southeast Asian Nations (ASEAN), and easy access into the Greater Mekong sub-region, where newly emerging markets offer great business potential.

Thailand plans to be the Hub of ASEAN

Thailand was one of the founding members of ASEAN and has been instrumental in the formation and development of the ASEAN Free Trade Area (AFTA).
AFTA entered into force on 1 January 2010 for the six original ASEAN (ASEAN-6) members (Thailand, Singapore, Malaysia, Indonesia, Philippines, and Brunei), thereby reducing import duties to zero; the so-called CLMV countries (Cambodia, Laos, Myanmar and Vietnam) will follow suit in 2015.
Thailand has forged close economic cooperation with other ASEAN member nations, and Thai manufactured products and services have access to their markets, which includes all 10 ASEAN countries. ASEAN is home to more than half a billion people, GDP in excess of US$1.5 trillion and total trade of well more than US$1 trillion per year.

EGAT has also announced its solicitations for power purchase from IPP projects to enhance competition in the generation business. This has been followed by power purchase from small power producers (SPPs) to particularly promote energy efficiency and the use of renewable energy resources for electricity generation.
In terms of international cooperation, EGAT has collaborated with neighboring countries in pursuing the ASEAN Power Grid Project to integrate the transmission systems within ASEAN countries for energy security and mutual economic benefits. The Electricity Generating Authority of Thailand is also in talks with neighbouring countries, to make joint developments in hydropower projects.

Amidst changes and challenges, EGAT has been and will be tirelessly developing the country’s electric power system to ensure that its electricity supply remains the most secure and reliable infrastructure service which contributes significantly to the betterment of the quality of life and the environment and drives the country’s economic and social growth in the future. The expertise and experience gained over 35 years of operation have provided EGAT with the multi-faceted power and strength needed in maintaining its leadership and a competitive edge in the new business environment.