Connect with us

Economics

Thailand’s economy grew at 2.3%YOY in 2019Q2, lowest in 19Q

Agricultural sector contracted by drought effect while industrial sector’s deteriorated following the export-related production.

Avatar

Published

on

Thailand’s economic growth in the second quarter of 2019 decelerated at 2.3%YOY, which is the slowest rate in nineteen quarters.

This was significantly due to a drop in exports, both goods and services. For production side, agricultural sector contracted by drought effect while industrial sector’s deteriorated following the export-related production.

EIC assesses 2019 Thailand’s GDP growth would below 3% from global economic slowdown. However, fiscal stimulus packages , which should be approved by the cabinet, are able to positively affect Thailand’s GDP.

Key points
Based on the expenditure approach, exports and tourism pulled down the growth while private consumption progressively expanded.
  • Export values in real terms dropped 5.8%YOY following a drop of 5.9%YOY in the previous quarter due to the global economic slowdown and higher tensions from U.S.-China trade war. Imports also shrank in real terms of -3.4%YOY, down from the previous quarter, which was at -2.6%YOY, from the reduction of raw material, and intermediate goods import for producing exporting products.
  • Service exports contracted from the drop in tourists’ number and transportation income, at-7.0%YOY, which was resulted from a slow in foreign tourist numbers, as well as a decline in transportation income, both in terms of transportation and freight.
  • Private consumption softened, at 4.4%YOY. This was mainly due to the decline in growth of durarable goods, at 5.5%YOY, declined from the expansion of 8.2% YOY in the previous quarter following the drop in auto sales. However, the growth of non-durable, and semi-durable goods accelerated at 3.0%YOY and 4.7%YOY, respectively, compared with the growth at 2.5%YOY and 2.8%YOY in the previous quarter. The continuous growth was supported by economic stimulus through the state welfare cards, valued at THB 13.2 billion.
  • Private investment growth slowed both in construction and machinary&equipment, at 2.2%YOY, reduced from the rise of 4.4%YOY in the previous quarter. This was due to a decline in machinery&equipment investment used in offices, industries, and automotives. Similarly, construction growth also decelerated from residence construction, mainly in Bangkok and Perimeter including municipal.
  • Public investment growth was rebounded at 1.4%YOY after shrinking -0.1%YOY from the previous quarter. This was resulted from the continous expansion in public construction, at the accelerated rate of 5.8%YOY from the increase of 4.1%YOY in the previous period. However, the investment in machinery& equipment continuously dipped at -8.5%YOY, partially affected from no airplanes imported by Thai Airways in the second quarter.

Author: Kampon Adireksombat, Ph.D.  ,Panundorn Aruneeniramarn and Jirayu Photirat 

Source link

EIC or Economic Intelligence Center, a unit of Siam Commercial Bank Public Company Limited, is established to provide business executives with valuable insights for effective decision making.

Economics

Thai fruit exports to FTA markets up 107 percent

China, Malaysia, Singapore, Indonesia, the Philippines, Hong Kong, Australia and Chile are top importers of Thai fruits, especially fresh durian, mangosteen, longan and mango. Thai exporters are able to benefit from FTA privileges.

National News Bureau of Thailand

Published

on

BANGKOK (NNT) – Thailand’s fruit exports continue to increase, despite the sluggish global economy caused by the COVID-19 pandemic, with key trade partners being countries that have free trade agreements (FTAs) with the kingdom.

Loading...
(more…)

Continue Reading

Economics

The Future of Asia: greener but with a public and private debt hangover

The COVID-19 pandemic has been a perfect storm, destroying jobs, worsening poverty and inequality, and creating a public and private debt problem—especially for countries and firms already in fragile financial health beforehand

Avatar

Published

on

The Sydney Opera resumed live performances and the city of Melbourne recently hosted the Australian Open tennis tournament with fans (mostly) in attendance.

Loading...
(more…)

Continue Reading

Economics

50:50 campaign may not get immediate extension

National News Bureau of Thailand

Published

on

logomain

Loading...

BANGKOK (NNT) – The government’s 50:50 co-pay campaign expiring on 31st March may not be getting an immediate campaign extension. The Minister of Finance says campaign evaluation is needed to improve future campaigns.

The Minister of Finance Arkhom Termpittayapaisith today announced the government may not be able to reach a conclusion on the extension of the 50:50 co-pay campaign in time for the current 31st March campaign end date, as evaluations are needed to better improve the campaign.

Originally introduced last year, the 50:50 campaign is a financial aid campaign for people impacted by the COVID-19 pandemic, in which the government subsidizes up to half the price of purchases at participating stores, with a daily cap on the subsidy amount of 150 baht, and a 3,500 baht per person subsidy limit over the entire campaign.

The campaign has already been extended once, with the current end date set for 31st March.

The Finance Minister said that payout campaigns for the general public are still valid in this period, allowing time for the 50:50 campaign to be assessed, and to address reports of fraud at some participating stores.

The Fiscal Police Office Director General and the Ministry of Finance Spokesperson Kulaya Tantitemit, said today that a bigger quota could be offered in Phase 3 of the 50:50 campaign beyond the 15 million people enrolled in the first two phases, while existing participants will need to confirm their identity if they want to participate in Phase 3, without the need to fill out the registration form.

Mrs Kulaya said the campaign will still be funded by emergency loan credit allocated for pandemic compensation, which still has about 200 billion baht available as of today.

Source link

Continue Reading

Most Viewed

Subscribe via Email

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

Join 13,974 other subscribers

Latest

Trending