Thai officials predict even stronger growth this year

The National Economic and Social Development Board, an advisory body, said booming exports and a healthier world economy led to the growth.

The bird flu crisis which killed 22 people in Vietnam and Thailand had a limited impact, it added.

The government expects stronger growth of between 7 to 8% for 2004.

Building projects

Growth surged in the last quarter, up by 7.8% compared to the same period a year earlier, the data showed.

"Production sector growth is up, particularly in non-agricultural sectors like industry, trade and construction," the advisory body's Chakramon Phasukavanich told correspondents.

Major projects like the new international airport will mean another 60 billion baht ($1.5 bn) being spent this year Surachai Pramualcharoenkit

"Another positive factor is world economic growth which is on the way up."

The central Bank of Thailand had earlier revised its forecast for this year's growth from 5.5-6.5% to 6.3-7.3% , on the basis of strong world growth and investor confidence.

Analysts pointed to government spending on transport projects this year which would help boost growth.

"Major projects like the new international airport will mean another 60 billion baht ($1.5 bn) being spent this year, as well as a lot of other projects to improve Bangkok's transport facilities," Kim Eng Securities economist Surachai Pramualcharoenkit said.