Connect with us

Economics

Thailand’s Economy in 2011 and Outlook for 2012

The Fiscal Policy Office has predicted that the Thai economy in 2011 would grow by only 1.1 percent, as a consequence of the flood disaster. A better outlook is seen in 2012, with economic growth between 4.5 and 5.5 percent.

Aishwarya Gupta

Published

on

Top foreign investors in Thailand are from Japan and Singapore

The Fiscal Policy Office has predicted that the Thai economy in 2011 would grow by only 1.1 percent, as a consequence of the flood disaster. A better outlook is seen in 2012, with economic growth between 4.5 and 5.5 percent.

The Director-General of the Fiscal Policy Office, Somchai Sujjapongse, said that the flood crisis had had a very bad impact on the manufacturing and agricultural sectors. Private consumption was likely to slow down and farmers’ income would also decline because of huge damage to agriculture.Inflation in 2011 is expected to stand at 3.9 percent, with higher production costs in food products, such as meat, vegetables, and fruit. Domestic fuel prices have also increased in line with crude oil prices in the world market.

Thai economy in 2011 would grow by only 1.1 percent

Private investment is likely to decelerate, because the flooding situation has compelled a number of factories to temporarily suspend production. Exports would also face a slowdown due to production disruption in the country and uncertainties in the global economy, as well as the problems of the debt crisis in Europe and unemployment in the United States. Export growth is expected to be 16 percent, while imports would increase by 23.3 percent.

The unemployment rate is expected to be 0.7 percent of the total labor force in the country. Thailand would have a trade balance of 26.3 billion US dollars.As for outlook in 2012, the Fiscal Policy Office pointed out that the implementation of the Government’s restoration and rehabilitation measures would be a supporting factor to spur the Thai economy. Private consumption is likely to grow by 3.8 percent.

A better outlook is seen in 2012, with economic growth between 4.5 and 5.5 percent.

The Government’s policies of raising the daily minimum wage and the starting salary for new graduates holding bachelor’s degrees and working in the public sector would stimulate public spending.Private investment is expected to grow by 10.3 percent, with the Government’s post-flood rehabilitation as a supporting factor. The effect of the global economic slowdown is likely to bring down Thailand’s export growth to about 9 percent.

The government spending would grow by 4.5 percent.

According to an economic report issued recently by the United Nations Economic and Social Commission for Asia and the Pacific ESCAP, the devastating flooding in Thailand would reduce the country’s economic growth to 2 percent for 2011. However, the Thai economy should bounce back in 2012 thanks to post-flood reconstruction. As a result of post-disaster investments for economic recovery, Thailand’s growth rate in 2012 is expected to be 4.5 percent. With a low public-debt level, at 40 percent, Thailand has fiscal space for investment to rebuild infrastructure for better flood management.

via Inside Thailand — Thailand’s Economic Situation in 2011 and Outlook in 2012.

Comments

Economics

Thai economy to grow 4% in 2021 following 6.5% decline in 2020

The World Bank is now expecting the Thai economy to see 4% growth this year, and a 4.7% growth in 2022, despite current challenges from the new wave of COVID-19 infections.

Olivier Languepin

Published

on

Crowded downtown area in Bangkok

The World Bank now expects that the Thai economy to expand by 4 per cent in 2021, according to the latest World Bank Thailand Economic Monitor report “Restoring Incomes, Recovering Jobs” released on Wednesday (Jan 20).

(more…)
Continue Reading

Banking

BoT sees mild impact of new COVID-19 wave on the economy

The Bank of Thailand (BoT) does not see the new wave of COVID-19 infections as having as much of an impact on the economy as the first wave, as fewer businesses have had to be suspended.

National News Bureau of Thailand

Published

on

BANGKOK (NNT) – Despite a new and wider wave of COVID-19 infections in the country, the Bank of Thailand (BoT) has assessed that the economic impact of the situation will not be as severe as the first wave as the effects of the virus are not as pronounced, and public health preparations, including plans for vaccination, are in place.

(more…)
Continue Reading

Economics

COVID-19 brings first consumer confidence drop in 3 months

Consumer confidence in December 2020 was measured at 50.1 points, down from 52.4 the previous month. Economic confidence was also down to 43.5 from 45.6 points.

National News Bureau of Thailand

Published

on

BANGKOK (NNT) – Concerns linked to the new wave of COVID-19 infections has weighed on both daily life and business, resulting in the first drop in the Consumer Confidence Index in 3 months.

(more…)
Continue Reading

Latest

Most Viewed

Subscribe via Email

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

Join 13,625 other subscribers

Trending