Thailand: the future is bright

Thailand is well on course for excellent economic growth in 2008…

After two years of political turmoil culminating in a coup last year, it seems the new government is finally settling in, and has made economic growth its top priority. This is illustrated by strong first quarter growth in 2008 - up six percent on the same period last year, and up 5.7% on the last quarter of 2007.

The Finance Ministry predicted six percent growth in the 1st quarter of 2008 and its predictions were absolutely right, but for those who need a little more convincing, the Institute of International Finance (IIF) also predicted growth in Thailand this year, as growing exports to non-U.S. countries off-set falling demand from the States.

The two reports are good news for investors who are looking at investing in Asia, as it is seen as having the best chance of weathering the global storm, a sentiment again backed up by the IIF, which recently commented that the leading emerging markets in Asia ‘are well-positioned to weather uncertain and less favourable global conditions’.

Spiraling tourism

Liam Bailey, head of international research at David Stanley Redfern Ltd commented: "Continued growth in Asia is excellent news for property investment in Thailand, especially in the emerging markets of Thailand's islands of Koh Samui and Koh Phangan, where growth is primarily fuelled by spiralling regional tourism.

”Property prices in Koh Samui, an island with more five and six star resorts than any other in the world, grew by 50% per year, in 2006 and 2007. Continuing growth in Asia will see tourism growth continue and capital appreciation stay at similar figures.

”Koh Phangan is the new kid on the block, and luxury resort property there is just as hot for investment, growth figures are unclear as it is a really new market, but with Phuket and Samui as comparisons growth will not be any less than 25% per year, and could hit 50% in 2010."