Despite the current rapid appreciation of the Thai baht, the country's economic growths for both 2006 and 2007 would meet the national target, Deputy Prime Minister and Industry Minister Kosit Panpiemras said Wednesday.

This year's economic growth is projected to meet its target of 5 percent while it would sustain growth at 4-5 percent as forecast by the National Economic and Social Development Board (NESDB), Kosit said.

Businessmen are closely monitoring the sharp appreciation of the baht, even as the Bank of Thailand (BoT) is intervening in the market to control the volatility of the currency, he said, adding that assistance given to the industrial sector must be worked out by all concerned agencies.

By around 2 p.m. (0700 GMT) Wednesday, the Thai currency stood at 35.31 baht to one dollar compared with Tuesday's closing at 35. 27 per dollar.

On Tuesday, Suchada Kirakul, an assistant BoT governor, said the baht had risen strongly because of brisk exports, robust trade and a capital account surplus. She admitted that the central bank had intervened the market to help ease the volatility of the currency.

The BoT earlier this month announced several new measures aimed at restricting investment by foreigners in the short-term money market. Export growth for 2007 is projected by the Commerce Ministry to expand 10-12.5 percent, said Kosit, adding that it is possible to achieve the targeted growth.

However, Thailand's export growth for next year will largely depend on the world economy, especially the United States whose economy in 2007 is anticipated to grow less than this year and it would impact Thai exports, the Thai News Agency said.

Bangkok Bank president Chatsiri Sophonpanich said his bank's research department has forecast that Thai economic growth for this year and next would be almost at the same level, around 4.5-5 percent.

Exports and local investment would be major factors in boosting the Thai economy, Chatsiri added.

Source: Xinhua