In a statement Chakramon said, “Thailand’s ambitions for economic expansion of at least 7% in 2004 are at risk from rising oil prices, which could cut the growth rate to 6%.”

“If the cost of oil stayed high the government [will] have to pour in millions to freeze domestic pump prices [and] if the oil price was US$35 per barrel, our GDP should stay around 6%,” he added.

Despite the gloom and doom, Chakramon believes Thailand will not be too affected by the oil price hike. He believes, at the most, the country’s GDP will drop by a percent at the most.

“Six percent expansion [is] still an impressive result against overall global economic growth which is expected to register just 3% this year,” said the official.

Currently, Thailand’s economy grew to 6.7% making it SE Asia’s strongest performer.