Thai consumer confidence hits record high in July

BANGKOK, Aug 14 (Reuters) - Thailand's consumer confidence surged to a record high in July, fuelled by an improving economy, robust exports, low interest rates and the early repayment of IMF arranged loans, a university survey showed on Thursday.

The University of the Thai Chamber of Commerce said the index for overall consumer confidence in the Thai economy rose for the fourth straight month to 98.0 in July from 94.6 in June.

The university started its monthly index tracking consumer confidence in September 1998, just over a year after Thailand's economy and financial sector collapsed as the devaluation of the Thai baht triggered the Asian financial crisis.

"Barring any negative factors in the months ahead, we should see consumer confidence returning to a normal level, with the index standing at 100 or higher within this year," said Thanavath Phonvichai, an economist responsible for the survey.

An index figure below 100 shows relatively weak consumer confidence, while a figure above 100 reflects relatively strong confidence.

Last month, the government repaid ahead of schedule a last $1.6 billion portion of debt Thailand had borrowed from the International Monetary Fund and multinational creditors to help it cope with the 1997/98 economic crisis.

Thanavath said consumer confidence was buoyed also by a central bank decision in late July to raise its economic growth forecast for this year to 4.5-5.5 percent from 3.5-4.5 percent.

Economists polled by Reuters in mid-July expected Thailand's gross domestic product to grow on average by 4.8 percent in 2003, against 5.3 percent in 2002.

The projected Thai GDP growth this year would be the second highest in Asia after China.

Domestic Thai car sales, a consistent barometer of consumer sentiment which have been boosted by low auto loan rates, rose 32.8 percent during the year to July.

Thai customs-cleared exports rose a preliminary 13.7 percent during the year to July. The Commerce Ministry said it expected exports to rise 10.6 percent over the whole of 2003 after 5.7 percent growth in 2002.

--Reuters News Service 2003-08-14

I hope that the Thai economy continues to grow. However, i feel that once the farangs are fed up with the bureaucracy, and/or kicked out, the economy will take a hit.

:cool: