Domestic spending has increased and the government will accelerate large project investment to help growth, Arkhom Termpittayapaisith told a Radio Thailand programme. Southeast Asia's second-largest economy expanded a weaker-than expected 2.6% last year, lagging that of others in the region as its tourism sector just started to pick up. Headline inflation should return to the central bank's target range of 1% to 3% this year, helped by government measures and lower food prices, Arkhom said. A baht exchange rate of 34 to 35 per dollar is helpful for export prices despite falling export volumes, he added. Reporting by Orathai Sriring, Kitiphong Thaichareon and Satawasin Staporncharnchai; Editing by William MallardOur Standards: The Thomson Reuters Trust Principles.

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