UPDATE 1-Thai Jan exports may have fallen over 20 pct-finmin

Thai exports may have fallen more than 20 percent in January from a year earlier due to the global economic slump, Finance Minister Korn Chatikavanij said on Wednesday.

"The world economy has yet to hit bottom," he told reporters after a meeting of economic officials. "January exports may have dropped more than 20 percent as a result of the slowdown in global and regional economies."

On Tuesday, Singapore reported its non-oil exports fell 34.8 percent in January from a year earlier as the financial crisis hit demand for Asian exports.

Thai trade data from the customs service is due on Thursday. Its data shows that exports in December dropped 14.5 percent from a year earlier.

Bank of Thailand trade data, regarded as more accurate by the market because it is based on financial settlements, is due on Feb. 27.

Prime Minister Abhisit Vejjajiva said the Bank of Thailand felt the baht was still competitive for exports.

"The central bank said it would keep the baht's moves in line with trading partners' and rivals' currencies, not only against the dollar," he said after the meeting, in which central bank Governor Tarisa Watanagase took part.

The baht was at around 35.30/34 per dollar on Wednesday. It has eased 1.4 percent this year, less than many Asian currencies.

Dealers have said the central bank has intervened in the market to weaken the baht over the past two weeks to help exports, although the currency's move has not been substantial.

The government has introduced a series of economic measures, including tax breaks, cheap utilities and cash handouts -- part of a 300 billion baht ($8.5 billion) package -- to help the export-led economy avoid recession.

Korn has said the measures should ensure economic growth of 2 percent this year after an estimated 3.6 percent in 2008.

Prime Minister Abhisit said the government planned to invest about 2 trillion baht over the next 3-4 years in several projects involving public infrastructure, tourism, education and healthcare to boost the economy in the medium and long term.

These projects would be financed by state spending, borrowing and partnership with the private sector, he said, without going into detail.

Source: http://news.alibaba.com/article/