Connect with us

Banking

Thai economy continued to improve in July, says Bank of Thailand

In July 2020, the Thai economy continued to improve, driven by public spending and the relaxation of lockdown measures both in Thailand and abroad, said Bank of Thailand.

Pr News

Published

on

seaport during golden hour

In July 2020, the Thai economy continued to improve, driven by public spending and the relaxation of lockdown measures both in Thailand and abroad.

Private consumption indicators, merchandise exports value, and manufacturing production exhibited lighter contractions. However, investment conditions remained vulnerable reflected by private investment indicators contracting deeper.

Meanwhile, the tourism sector persistently experienced severe contraction due to travel restrictions on foreign tourist arrivals noted Bank of Thailand.

On the economic stability front, headline inflation recorded a softer negative, mainly from higher core inflation after some of the government’s relief measures expired. Labor market somewhat improved consistent with the economic activities.

Nonetheless, overall employment condition remained weak. The current account turned surplus mainly contributed by gold exports. Meanwhile, the capital and financial accounts were nearly balanced.

Details of the economic conditions are as follows:

Private consumption indicators

Private consumption indicators marked softer contractions compared to the previous month. Improvements in almost all spending categories were seen as lockdown measures were eased, coupled with a temporary factor of extended weekends, relatively more than last year partly due to the announcement of a substitute holiday for Songkran festival that was postponed from April.

In addition, recovery in labor market, household income and consumer confidence motivated consumers to travel and spend more.

The value of merchandise exports contracted by 11.9 percent

The value of merchandise exports contracted by 11.9 percent from the same period last year. Excluding gold, the value of merchandise exports contracted by 14.3 percent. Both numbers showed a lesser contraction relative to the previous month as exports in several categories improved such as automotive and parts, machinery and equipment and electronics, in line with the resumption of economic activities in trading partner countries after lockdown measures were eased in various parts of the world.

Manufacturing production contracted at a lower rate in almost all categories,aligning with the uptick in merchandise exports and private consumption.

The value of merchandise imports contracted by 25.4 percent

The value of merchandise imports contracted by 25.4 percent from the same period last year, sharper contractions in all categories of products as compared to the previous month. This was partly due to a discontinuity of low base effect last year for crude oil and capital imports. Though firmed up recently, subdued domestic and external demand still undermined imports.

Private investment indicators contracted at a higher rate

Private investment indicators contracted at a higher rate as compared to the previous month from investment in machinery and equipment; weighed down by imports of capital goods, the number of newly registered motor vehicles, as well as domestic machinery and equipment sales. The weakening was a result of domestic and external demand still in the early stage of recovery, significant excess production capacity, and high economic uncertainty. However, investment in construction expanded slightly due to construction material sales, reversing the contraction last month.

Zero foreign tourist arrivals

The number of foreign tourist arrivals continued to contract severely at 100 percent from the same period last year. Thailand received no foreign tourist arrivals for the fourth consecutive months as international travel restrictions remained in place.

Public spending, excluding transfers, continued to expand from the same period last year,attributed by marked expansion in capital expenditures both from the central government and state enterprises. However, current expenditures contracted slightly due to purchases on goods and services.

Overall economic stability headline inflation recorded a softer negative,mainly from higher core inflation after some of the government’s relief measures expired.

Labor market somewhat improved, reflected by a decline in the number of workers registered for the temporary suspension of business (section 75), consistent with the recovery in economic activities. Nonetheless, overall employment conditions remained weak. The current account turned surplus attributed to a larger surplus in the trade balance led by gold exports value. Meanwhile, the capital and financial accounts were close to being balanced.

Siam News Network includes top references news sites, Job Board, Business Directory and Classifieds Portal

Comments

Banking

Four Thai banks Probed Over Anti-Money Laundering Investigations

Four Thai banks allegedly involved in suspicious financial transactions are under investigation from the Anti-Money Laundering Office (Amlo)

Olivier Languepin

Published

on

The Anti-Money Laundering Office (Amlo) is currently investigating an international report claiming that four major Thai banks were involved in suspicious financial transactions, according to the International Consortium of Investigative Journalists’ report referring to alleged leaked files from the Financial Crimes Enforcement Network of the US.

(more…)

Continue Reading

Banking

Bank of Thailand (BOT) to help Multi-Creditors Businesses Lessen Their Debt Burdens

The program aims to provide a mechanism for multi-creditors businesses to lessen their debt burdens and support coordination among multiple creditors.

Avatar

Published

on

The program aims to provide a mechanism for multi-creditors businesses to lessen their debt burdens and support coordination among multiple creditors.
To continue reading, subscribe today : View subscription options.
Already a subscriber? Sign In here, or use a social media account to login.
Continue Reading

Banking

Bank of Thailand (BOT) reaffirms commercial banks’ financial health

Thailand’s commercial banks are financially sound and are able to withstand any economic impact from the pandemic, Bank of Thailand (BoT) Deputy Governor Ronadol Numnonda said

National News Bureau of Thailand

Published

on

Thailand’s commercial banks are financially sound and are able to withstand any economic impact from the pandemic, Bank of Thailand (BoT) Deputy Governor Ronadol Numnonda said
To continue reading, subscribe today : View subscription options.
Already a subscriber? Sign In here, or use a social media account to login.
Continue Reading

Cart

Most Viewed

Events Calendar

« September 2020 » loading...
M T W T F S S
31
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
1
2
3
4

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 12,935 other subscribers

Latest

Trending