Thai Economy Continues To Shrink In January

Economy continues to shrink in January: BoT

BANGKOK: -- Thailand’s economy in January continued to shrink with all economic indicators showing a continuing contraction, according to the Bank of Thailand (BoT).

BoT Local Economy Division senior director Ummara Sripayak revealed that incomes earned by farmers increased slowly at 8.6 per cent compared with 20.3 per cent in December 2008 because the output of natural rubber and sugarcane had dropped.

Prices of agricultural commodities continued to drop due to the global economic recession.

She said the industrial output index, particularly in the electronics, electrical appliance, and auto sectors, dropped 21.3 per cent, resulting in the production capacity efficiency staying at only 57.1 per cent.

Private consumption and investment contracted 4.5 and 7.9 per cent respectively.

Imports plunged by 36.5 per cent with a total value of US$8.69 billion and exports shrank in the third consecutive month by 25.3 per cent with a value of $10.38 billion, resulting in a trade surplus of $1.69 billion.

The general inflation rate contracted 0.4 per cent, the first time since October 1999, in tandem with falling oil prices.

Mrs. Ummara said the baht weakened to move at 36.06-36.08 to the dollar in the same direction with other currencies in the region while the dollar and the Japanese yen strengthened.

-- TNA 2009-02-28