Thailand’s economy grew 6.7 per cent year-on-year in the third quarter of 2010, National Economic and Social Development Board NESDB secretary-general Arkom Termpitayapaisit said.
Thailand’s economy grew at the slowest pace in three quarters as exports eased and agriculture declined, prompting the government to predict the central bank will refrain from raising interest rates for the next year.
The economic growth in the last quarter contracted 0.2 per cent from the second quarter.
The country’s gross domestic product in the first nine months of this year rose 9.3 per cent when compared to the same period of last year, thanks to continuous expansion in exports, investment and consumption.The NESDB expected the Thai economy in the fourth quarter to drop 0.3 per cent due to the heavy flooding in many areas of the country, but the GDP for the entire 2010 should increase 7.9 per cent.
The third-quarter figure marks two straight quarters of contraction, technically the definition of a recession, after the agency revised down second-quarter GDP data to a contraction of 0.6% on quarter from a previous estimate for 0.2% growth. But still this is the kind of recession many countries would like to endure : the agency raised on-year growth in the second quarter to 9.2%, from 9.1%.
This year’s inflation rate should stand at 3.2 per cent while exports should expand 25.1 per cent.Risk factors in the fourth quarter included the strengthening baht, the impact from flooding, the fluctuation of oil prices and a reduction in consumption.
Thai consumer confidence fell for the first time in six months in October as the baht surged and the nation’s worst floods in five decades devastated agricultural land, a report showed this month. The flooding may curb Thai GDP growth this year by 0.3 percentage point, Arkhom said today.
Foreign Investment Recovers
Dr. Atchaka (BOI sec. gen) added that foreign direct investment in Thailand is on the upswing. For January-October 2010, some 691 foreign applications with a total investment value of 174,884 million baht were submitted to the BOI. This represented a 26.3% increase in the number of projects compared with the 547 projects submitted in the same period last year. The investment value was 11.1% higher compared with 157,401 million baht in the first 10 months of 2009.
Japan remained the largest foreign investor with 284 applications worth 71,342 million baht in January-October 2010, followed by Spain (2 projects worth 22,008 million baht), China (23 projects, 9,681 million baht) and Singapore (52 projects, 9484 million baht).
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
50:50 campaign may not get immediate extension
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.
Customs Department Considers Measures to Help SMEs
BANGKOK (NNT) – The Customs Department is seeking ways to reduce the impact of the exemption on import tax and value-added tax (VAT) for imported goods worth up to 1,500 baht, as such measures are hurting small and medium-sized enterprises (SMEs).
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