Connect with us

News

Thailand’s economic prospects for 2010

Avatar

Published

on

wat po buddha

Thailand’s economic prospects continued to get brighter as the first quarter of 2010 came to a close and the data revealed healthy growth in production and improved consumer confidence. In a statement released by the Ministry of Finance, the forecast for economic growth during the current year was revised upwards to 4.5%, or within a range of 4% to 5%, from an earlier 3.5% forecast.

Loading...

The Director-General of the Fiscal Policy Office has reported that the revised projection was made following improvements in Thailand’s exports and in its private consumption. He noted that the Thai economy is more balanced now, with its expansion being driven by both internal and external factors.

Also supporting the better than expected economic activity is the recovery of Thailand’s major trading partners. Moreover, these projections have already taken into account the potential impact of the suspension of projects in Map Ta Phut, as well as the political situation. And if these issues find resolution and there is an acceleration of disbursements under the economic stimulus “Stronger Thailand 2012” program, the upper end of the range for economic growth at 5% could be hit.

New markets continue to be targeted by the Tourism Authority of Thailand, including attracting more regional tourists, as well as expanding others

A spokesman for the Ministry of Finance has also reported that the export volume of goods and services for the coming year is forecasted to grow by 9.7%, which is a significant improvement from the contraction in 2009, and that private consumption is projected to expand by 4.3% and private investment by 8.2%. It should be noted that during February alone, exports increased by 23.5% year- over-year (yoy), hitting US$14,255 million. The driving force behind this was increased exports of automotives, electrical appliances, computers and rubber. And adding to the improved economic outlook is the fact that income from foreign tourist arrivals shows strength as tourist arrivals hit 1.6 million persons.

The Bank of Thailand reports that “private investment continued to improve, increasing by 1.6 percent from the previous month or 11.4 percent (yoy). This was partly from imports of capital goods, especially industrial machinery used in electronic, vehicle and electrical appliance industries. Besides, fiscal stimulus remained supportive partly owing to the increased disbursement of projects under the Strong Thailand 2012 Project, especially farmers’ income guarantee scheme.” The BOT also reports that improving domestic and external demand led to an 80.8% (yoy) expansion in import value of US$13,803 million. And that import quantity grew by 62.6 percent (yoy) following expansions in raw materials and intermediate goods, whereas the import price rose by 11.2 percent (yoy).

The increased import of raw materials bodes well for export of manufactured goods further in the year. Looking at the preliminary data, the manufacturing production index (MPI) for January and February shows a 29.1% and 30.2% increase measuring 76 products, with vehicles increasing in January by 52.1% and in February by a very strong 102.8%. Iron and Steel likewise show a strong upward trend at 47.8% and 60.2% for the frst two months of the year, with electronics averaging a 64% increase.

The economic recovery is clearly underway, and by all accounts the coming months will continue to shine. In its Economic Outlook report issued in February 2010, the National Economic and Social Development Board noted “The recovery in 2010 will be supported by export and manufacturing production expansion, and the regain of domestic private demand.” And that the “Thai economy tends to grow at a faster pace than previously expected…”

The NESDB report also noted that the revival of Thailand’s economy will be concentrated on sectors such as electronic products, vehicles and equipments, and electrical appliances, which will benefit from the inventory liquidation cycle in major countries. In addition to manufacturing, the NESDB has forecasted an expansion in the construction sector, as public construction is likely to accelerate with the implementation of the second government economic stimulus plan. With relaxation of credit approvals and expansion of the mass- transit system into Bangkok’s suburbs, private construction will also benefit and see growth this year.

Then too, last September the Board of Investment included the manufacture of completely built housing units (CBU) in its investment promotion scheme, granting import duty exemption on machinery in every zone. This should also help promote the application of new technologies and construction knowledge. And as indicated above, tourism continues to do well thus far with arrival figures for 2010 forecasted to be 16 million persons, which is a 13.5% increase over the previous year.

New markets continue to be targeted by the Tourism Authority of Thailand, including attracting more regional tourists, as well as expanding others. So all in all the year is off to a great start and renewed vigor is being injected into the system. Investors can rest assured that as the global economy returns to a more normal pace of growth, Thailand will continue to enjoy its traditional path of steady and strong economic growth under an attentive and business friendly government and people.

Asean

ASEAN economies poised for robust recovery with 6% real GDP growth in 2021

The six largest ASEAN nations (Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam) are expected to witness positive real GDP growth rates in 2021 according to Global Data

Avatar

Published

on

Receding daily COVID-19 cases, rollout of vaccines, increased spending by the governments along with easing of monetary restrictions will help revive the Association of Southeast Asian Nations (ASEAN*) economies in 2021 with their real GDP forecasted to rise by 6%, says GlobalData, a leading data and analytics company.

Loading...
(more…)

Continue Reading

News

Thailand new coronavirus cases -59- down to two digits

Of the new cases, 28 were exposed to the virus while visiting high-risk areas. The province with the highest number of infections is Bangkok (10), followed by Samut Sakhon (7).

Boris Sullivan

Published

on

Thailand confirmed 59 new coronavirus cases and one additional death on Wednesday, taking its total infections to 12,653 and fatalities to 71, the first day Covid infections are down to two digits since the beginning of the second Covid-19 outbreak in the country in December.

Loading...
(more…)

Continue Reading

News

Thailand switches to black and white for final farewell to late King

Many businesses across Thailand will come to a halt while others will make necessary adjustments to pay their last respects to the beloved late King Bhumibol Adulyadej.

Boris Sullivan

Published

on

Many businesses across Thailand will come to a halt while others will make necessary adjustments to pay their last respects to the beloved late King Bhumibol Adulyadej. (more…)

Loading...
Continue Reading

Most Viewed

Subscribe via Email

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

Join 14,079 other subscribers

Latest

Trending