Bangkok - The number of Thai companies that were forced to close down during the first half of this year nearly hit 7,000, up 22 per cent compared with the same period in 2007, news reports said Tuesday.

Altogether 6,899 companies were shut down in the January to June period, with 1,681 firms closing in June alone, according to figures released by the Business Development Department.

Thai firms are facing a myriad of challenges this year including rising oil prices, an inflation rate that reached 8.9 per cent in June, a slow down in consumption and growing political instability that has affected foreign investment.

During the first six months of this year, some 1,206 new companies were registered, up 6 per cent, the department's deputy director-general Pranit Lortragood told The Nation.

Thailand currently has a total of 548,818 registered companies. (dpa)