Thailand's gross domestic product (GDP) is seen up 5.0 percent next year as exports, which account for more than 40 percent of the economy, are likely to rise 12 percent year-on-year to 122.8 billion dollars.

"External factors affecting our economy are world oil prices and economic growth of our trading partners. But we anticipate there will be few negative internal factors," finance ministry spokesman Somchai Sujjapongse said.

Imports are seen up eight percent at 127.7 billion dollars, the ministry said, adding the economy in 2005 is to grow 4.3 percent despite a drought earlier this year, high oil prices and an economic slowdown following last year's tsunami.

"The economy in 2006 is likely to post stronger growth than this year because oil prices are stabilizing," said Thanyalak V. Surapol, a senior economist at Kasikorn Research Center.

"Also we see positive factors such as a rebound in private consumption and a rise in private and government investments," Thanyalak added.

The finance ministry also forecast inflation, which hit a seven-year high of 6.2 percent in October due to high oil prices, would stay at 3.5 percent in

Meanwhile, the Bank of Thailand said the current account surplus in October nosedived by 93 percent from a year earlier to 69 million dollars as imports expanded faster than exports due to high global oil prices.

"Our current account surplus fell sharply because the value of imports far exceeded that of exports due to high oil prices. Also the purchase of two aircraft lifted the overall import value," said a central bank official.

Oil imports account for 10 percent of Thailand's total imports. The value of oil imports in October jumped 64 percent year-on-year to 1.82 billion dollars.

"Apart from high oil prices, imports increased sharply due to the purchase of two aircraft. This is a very special factor," economist Thanyalak said.

Exports in October increased 7.7 percent to 9.4 billion dollars while imports rose a stronger 19.7 percent to 9.8 billion dollars, resulting in a trade deficit of 372 million dollars, the central bank said.

"Usually, the October-December quarter is a high season for exports but our exports were really modest. Our exports of agricultural products and hi-tech products, in particular, were slowing," the economist said.

In trade with Thailand's two biggest partners, US-bound shipments in October edged up 0.9 percent to 1.5 billion dollars while exports to Japan rose four percent to 1.3 billion dollars.

Investors hardly reacted to Wednesday's release of economic figures as the data were in line with their expectations, dealers said.

The Stock Exchange of Thailand (SET) composite index shed 2.15 points to 667.75 points, and the bluechip SET 50 was off 2.42 points to 467.28.

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