Thailand's economy has turned around

According to official figures released on Monday, the country's economy expanded by 5.2% in 2002.

Figures last month showed consumer confidence is also at its highest in five years.

But the country's strong performance is expected to moderate this year because of the looming war in Iraq, the government said on Monday.

Asian crisis

The Thai economy has enjoyed a remarkable turnaround since the 1997-98 Asia crisis.

It recently repaid $950m of a $17.2bn loan from the International Monetary Fund on Friday.

The IMF bailed out the country after the Asia crisis left its economy in a state of near-paralysis.

Monday's growth figures released by the National Economic and Social Development Board (NESDB) came in above its forecast 4.9% gross domestic product (GDP) growth.

This promped it to raise its 2003 forecast expansion to between 4% and 5% growth from 3.5 to 4.5%.

In 2001, the economy only grew by 1.9%.

Domestic demand

NESDB secretary-general Chakramon Phasukvanich said fourth quarter GDP rose 6.1% from the same period in 2001, despite rising concerns about Iraq, which triggered oil price increases.

"The 2002 economic growth was mainly driven by domestic demand.

"Private consumption expenditure increased by 4.7% year-on-year, while private investment grew by 13.3%," the NESDB said in a report.

Exports rose 5.7% to $66.9bn last year, while imports rose 4.6% to $63.4bn, according to preliminary figures.

Mr Chakramon said economic growth in the first quarter of this year is expected to remain at a satisfactory level.