It looks as if Thailand's economy is heading for Bangkok-style gridlock. Gross domestic product contracted quarter-on-quarter in the first three months of 2005 the first decline for four years.

The year-on-year growth rate has slowed to 3.3 per cent. Remember that Thailand was supposed to be forging ahead at 10 per cent a year by now, according to Prime Minister Thaksin Shinawatra's original, hubristic targets. Meanwhile, April's trade and current account deficits were the largest in nine years and inflation has hit a six-year high.