THAILAND'S recession-hit economy should return to positive growth later this year with recovery by 2010, the country's Prime Minister Abhisit Vejjajiva said on Monday.

Speaking to business executives during an official visit to Singapore, Mr Abhisit said he also hopes a massive stimulus package would lead to the creation of 1.5 million to 2.0 million jobs.

The Thai economy slipped into recession in the first quarter of this year as growth shrank by a bigger than expected 7.1 per cent due to tumbling exports while tourism was hit by political unrest at home.

Mr Abhisit said a US$22 billion (S$32 billion) stimulus should help Thailand 'get growth back into positive territory by the end of the year (and) begin the process of recovery by next year,' he said.

He added that he hopes the Thai Senate will approve legislation Monday allowing the government to borrow the money to fund the stimulus.

The money will be used to upgrade irrigation, transportation and communication facilities as well as schools and health care centres, among other things, he added.

'Whatever turbulence my administration has been through, we have never been distracted, we have never lost sight of the topmost priority, which is to make sure that recovery will be underway as soon as possible,' he said. -- AFP