NA approves economic growth of 8 percent

The National Assembly last week approved a draft of the Seventh Socio-Economic Development Plan for 2011-2015, which sets a target for economic growth of at least 8 percent annually.

 

The agriculture and forestry sector is set to grow by 3.5 percent, equal to 23 percent of GDP; the industrial sector is set to grow by 15 percent, equal to 39 percent of GDP; and the services sector is set to grow by 6.5 percent, equal to 38 percent of GDP.

The government says that to ensure economic growth of 8 percent, it needs at least 127 billion kip or about US$15 billion to invest in various development projects. The money will come from the state budget, foreign assistance, loans and other investments from the private and state sectors.

Under the development plan, average annual revenue including that sourced from foreign assistance will cover 19 to 21 percent of GDP over the next five years, keeping the budget deficit at 3 to 5 percent per year.

In the years 2006 to 2010, economic growth stood at 7.5 to 8 percent annually, spurred on by foreign direct investment.

Despite these achievements, there were many shortcomings in socio-economic development during this period. Many development projects were delayed due to financial difficulties and weak responsibility on the part of officials. Some projects lacked sufficient monitoring and systematic and consistent assessment.

However, the government has every intention of developing the nation and reaching the Millennium Development Goals by 2015 and becoming an active member of the Asean Community by 2015.

By 2015 it is expected the population will rise from over 6 million at present to about 6.9 million people with a growth rate of 2 percent per year. It is also expected the labour force will comprise 3.26 million people in the next five years.

The National Assembly agreed that extending the supply of electricity to rural areas would boost local development as well as bring in more tourists. The five-year plan sets the target for tourist arrivals at 2.8 million people by 2015.

Currently, annual tourist numbers stand at about 2 million people despite the ongoing financial crisis and political unrest in Thailand.

The government has pledged to improve living conditions so life expectancy for men reaches 66 years by 2015 and 68 years for women.

The assembly also agreed on the need to balance environmental protection with development to ensure sustainable economic growth while accelerating poverty reduction.

The government has said it will increase forest cover to 65 percent by 2015 and to 70 percent by 2020. Forest cover has been declining for more than five decades. In 1940, forest cover stood at 70 percent, covering 17 million hectares but by 2001 this figure had dropped to 41 percent.

Source: VIR