Exports, which account for more than 40 percent of Thailand's economy, are seen up 12.0 percent year-on-year to 122.8 billion dollars in 2006 with imports projected to rise by 8.0 percent to 127.7 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," ministry spokesman Somchai Sujjapongse said.

The government also expected Thailand's current account deficit to stay at 200 million dollars in 2006 while foreign reserves are likely to reach 52.0 billion dollars next year, up 7.7 percent from last year.

The government forecast the economy to grow by 4.3 percent in 2005 despite a drought earlier this year, high oil prices and an economic slowdown following last year's tsunami.

In 2005, exports are likely to rise 14.1 percent year-on-year to 109.6 billion dollars while imports are projected to expand a bigger 25.3 percent to 118.2 billion dollars.

"Thus the country will post a trade deficit of 8.6 billion dollars. It was due to high oil prices as the value of oil imports jumped 44.5 percent from last year to over 18.5 billion dollars," the ministry spokesman said.