01 February 2010 | By: Mohamed Hairul Borhan

Thailand remains an attractive destination for foreign investors, especially in the agricultural and tourism sectors, said Thai Prime Minister Abhisit Vejjajiva after attending the 40th World Economic Forum in Davos, Switzerland.

He revealed that he had met up with the Swiss president, the Belgian premier, the World Trade Organisation director-general and foreign media and explained to them about Thailand’s economic recovery.

He also assured them that the country’s political situation and the Thai government’s plan to amend the country’s constitution will not affect the government’s stability, and that it has the means to continue strengthening the economy.

According to Sathit Rangkasiri, director-general of Thailand’s Fiscal Policy Office, the Thai economy should expand by about 3.5 per cent in 2010, although the suspension of projects in Map Ta Phut could lower growth by up to 0.5 per cent.

This positive outlook comes on the back of a rebound in the country’s economy in the last quarter of 2009 which saw Thai exports posting a double-digit growth of 11.9 per cent to US$43.3 billion (S$61.1 billion*). It was the sector’s first increase in 2009, after contracting 17.7 per cent in the previous quarter.

Imports in the previous quarter also rose for the first time last year to reach US$40.3 billion.

Tarisa Watanagase, Bank of Thailand’s governor, said that are no signs of a bubble forming in the Thai economy at the moment. She said that the country’s economy recovery has become clearer, and the government no longer have to rely on expansionary monetary policy to bolster the economy.

*Exchange rate correct as at 01 February 2010