Thailand's economy begins to recover

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Thailand's economy begins to recover 
Bangkok Post: 24 Aug 2009
www.BangkokPost.com

NESDB: Economic slump easing

BangkokPost.com at 10:59 AM

Thailand's gross domestic product fell six per cent in the first six months of this year but grew 2.3 per cent in the second quarter over the previous quarter, the National Economic and Social Development Board (NESDB) reported on Monday.

The economic slump had started easing as the GDP in the second quarter of 2009 contracted 4.9 per cent year-on-year. The GDP in the first quarter plummeted 7.1 per cent compared to the same period of last year.

"The Thai economy has passed the lowest point of the economic crisis and began to pick up in the end of the second quarter.

“Some positive signs are the recovering global economy coupled with higher household spending, more spending and investment from the state sector, production increases and higher consumer confidence,” the NESDB reported.
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NESDB: Thai economy begins to recover

BANGKOK, Aug 24 (TNA) – Thailand’s economy is showing signs of recovery as the gross domestic product (GDP) in the second quarter of this year contracted by 4.9 per cent year-on-year, down from 7.1 per cent in the first quarter, according to official figures released on Monday.

Secretary-General Ampon Kittiampon of the National Economic and Social Development Board (NESDB) said Thai exporters received more orders until the year end, particularly electronic goods and furniture exported to China, Taiwan, South Korea and India as gains in the world economy have started to have a positive impact on Thai trade.

Household spending in June increased 2.6 per cent, compared to May, resulting from the government’s economic stimulus packages, which bolstered consumers’ purchasing power, Mr Ampon said.

Government spending in the second quarter of this year expanded by 5.9 per cent, up from 3.6 per cent in the first quarter while the public investment grew 9.6 per cent, slightly recover from 9.1 per cent contraction in the first quarter. The increase of the government’s spending and investment stemmed from speeding budget disbursement and mid-year supplementary budget.

The industrial production in the second quarter contracted by 8.4 per cent, up from the first quarter, which contracted by 14.4 per cent.

Imports shrank 27.5 per cent, down from 35 per cent recorded in the first quarter because the private sector were more confident in the economy and imported raw materials to manufacture goods for exports. The overall outlook for industrial growth has improved, said the NESDB secretary-general.

The current political turmoil is among the negative factors that have contributed to sluggish investment of the private sector.

Other negative factors are the spread of the Influenza Type A(H1N1) and the global economic slowdown, which affected tourists’ purchasing power and had an impact on hoteliers and restaurant operators.

What should be of concern is increasing oil prices, he said, the NESDB estimated that the GDP will contract less than 3-3.5 per cent this year.

The unemployment rate has returned to normal and stood at 1.8 per cent on average or 500,000-600,000, which was not a cause for concern as the number of the unemployed is unlikely to top one million, he said.

The NESDB also revised its growth forecast for 2009 that the country’s GDP is likely to contract between 3-3.5 percent from the previous growth forecast of minus 2.5 to 3.5 per cent.

What the government should do is to speeding up the disbursement of the 2009 budget and the implementation of the ‘Stronger Thai’ scheme to boost the economy and develop infrastructure in rural areas, he added. (TNA)

Business News : Last Update : 17:37:16 24 August 2009 (GMT+7:00)