Thai economic growth in Q3

doing_business_in_thailandThai economic growth in the third quarter will likely expand at a higher pace than in the second quarter, as a gradual recovery in developed economies, particularly the US, can help to raise exports, says a Bank of Thailand official.

Mathee Supapongse, the central bank’s senior director of macroeconomic and monetary policy, said the central bank also now estimates the country’s second-quarter gross domestic product (GDP) will fail to reach the 4% year-on-year target.

Earlier, the Finance Ministry’s Fiscal Policy Office also forecast second-quarter GDP growth would fall below 4%, while the National Economic and Social Development Board is scheduled to announce its figure on Aug 19.

Domestic consumption and private investment will increase in the third quarter following a rebound in Thai exports, said Mr Mathee.

The central bank is monitoring household debt closely, he said, adding that the rate will not likely increase during the slowdown.

It recently said rising household debt, which stood at 78% of GDP at the end of last year, limits the scope of a policy rate cut amid the sluggish economy.

Economic indicators show the Thai economy continued to grow moderately in June due to ebbing external demand from China, contributing to a slowdown in manufacturing production of export products and private investment, said the central bank.

Declining exports of farm products, fisheries items and manufacturing goods caused merchandise export value to drop by 3.5% year-on-year, although that was better than May’s 5.1% decline.

Reduced production of processed seafood and hard disk drives caused the Manufacturing Production Index to dip 3.5% year-on-year while the Private Investment Index fell 4.1% as a result of the slowdown in machinery and equipment investment.

Private consumption stabilised as non-durable purchases increased, with fuel consumption and food and beverage imports leading the way.

Durable consumption declined due to shrinking car purchases.

The tourism industry continued its rapid expansion, growing by 25% year-on-year, as 2.1 million foreign tourists have arrived, mostly from China, Malaysia, India and Russia.

The repatriation of profits and dividends caused a deficit in the current account, while the capital account also posted a deficit.

 

 

 

 

Source : Bangkok Post | August 1, 2013

Advertisements

About thomasdinnocenzi

Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
This entry was posted in Business, Economy, Global Sourcing and tagged , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s