Thai Economy Likely To Slow

[george]

Thai economy likely to slow

BANGKOK: -- The Thai economy is likely to slow in the next six months as a result of rising global crude oil price and foreign exchange volatility, especially in Chinese yuan, according to the Deputy Governor of the Bank of Thailand (BOT), Tarisa Watanagase.

Businessmen and investors should be more cautious in the next six months because these factors could severely affect the Thai economy, she said.

The BOT’s measures to control personal loans will come into force on 1 July, including charging borrowers an interest fee plus premiums of up to 28%, Mrs. Tarisa said.

These measures were introduced after it was found that non-performing loans (NPLs) in the personal loan business had increased, especially among the low-income group.

Personal loans now account for 3.5% of the financial institutions’ total lending.

--TNA 2005-06-26

[quiggs]

This seems to state the obvious. High oil prices increase the price of almost every product, and drain money which would otherwise be spent in the general economy on good and services. Seems pretty straightforward.

Thai economy likely to slow 

BANGKOK: -- The Thai economy is likely to slow in the next six months as a result of rising global crude oil price and foreign exchange volatility, especially in Chinese yuan, according to the Deputy Governor of the Bank of Thailand (BOT), Tarisa Watanagase.

Businessmen and investors should be more cautious in the next six months because these factors could severely affect the Thai economy, she said.

The BOT’s measures to control personal loans will come into force on 1 July, including charging borrowers an interest fee plus premiums of up to 28%, Mrs. Tarisa said.

These measures were introduced after it was found that non-performing loans (NPLs) in the personal loan business had increased, especially among the low-income group.

Personal loans now account for 3.5% of the financial institutions’ total lending.

--TNA 2005-06-26

<{POST_SNAPBACK}>

[Martin]

Maybe it is already slowing as the thai baht has weakened against the dollar and the pound over the past few days.

Although obvious to the well-educated, it is right for the monetary authorities to be putting out a warning that this is no time for people to be increasing their personal indebtedness. Nor for finance firms to be aquiring a lot of what may become bad debts when the shortage of disposable income in the general population is likely to cause some service sector firms to lay off staff. The reasons for the economic slowdown are different than they were for the slowdown of 1997, but the knock-on effects will be much the same.

A recession entered by a population who are not in debt can be coped with by some general belt-tightening. But for those who have drawn on easy credit (especially if they find themselves unemployed) recession can bring on personal depression And personal depression is contagous, which reults in widespread economic depression.

So all power to all public figures who can get their words of caution heard.

[ray23]

Maybe it is already slowing as the thai baht has weakened against the dollar and the pound over the past few days.

Although obvious to the well-educated, it is right for the monetary authorities to be putting out a warning that this is no time for people to be increasing their personal indebtedness. Nor for finance firms to be aquiring a lot of what may become bad debts when the shortage of disposable income in the general population is likely to cause some service sector firms to lay off staff. The reasons for the economic slowdown are different than they were for the slowdown of 1997, but the knock-on effects will be much the same.

A recession entered by a population who are not in debt can be coped with by some general belt-tightening. But for those who have drawn on easy credit (especially if they find themselves unemployed) recession can bring on personal depression And personal depression is contagous, which reults in widespread economic depression.

So all power to all public figures who can get their words of caution heard.

<{POST_SNAPBACK}>

I think everybody has seen this coming and I would be very surprised if it is not true.

My question for those of us who have incomes coming in from outside Thailand, what are the best moves for the proceeding year. I still have not bought a house here and am told that even if the economy takes a dump, the prices on the houses will not come down. So some good ideas from those who really understand this, would be really nice

[Martin]

Where do you want to live, ray? And do you want a ready built house, new? or used? Or would you want to choose a plot in town? or in or near a village? and have a house built for you?

I could only comment from experience on getting a house built in the rural North East.

I do however know that there are some attractive houses on housing developments between Khon Kaen Airport and Khon Kaen itself that are available at a discount because they are the last ones left to be sold.

Apparently developers crack on with getting a development underway as soon as they can see they are sure to sell the great majority.

And in boom times, people come along when the development is nearly finished and pay full whack, or a touch over, for the last ones.

But the opposite occurs at a time when demand is drying up and the last few get left on the developers' hands after they have moved their sales teams on, and a good deal can be struck.

When I heard about this, it struck me that if I ever wanted to live on a new development, I would go in late when I could see what neighbours I would be getting!

If that is of any interest, I can contact a 'farang' who knows the score from the inside and put you in touch.

[ray23]

Where do you want to live, ray? And do you want a ready built house, new? or used? Or would you want to choose a plot in town? or in or near a village? and have a house built for you?

I could only comment from experience on getting a house built in the rural North East.

I do however know that there are some attractive houses on housing developments between Khon Kaen Airport and Khon Kaen itself that are available at a discount because they are the last ones left to be sold.

Apparently developers crack on with getting a development underway as soon as they can see they are sure to sell the great majority.

And in boom times, people come along when the development is nearly finished and pay full whack, or a touch over, for the last ones.

But the opposite occurs at a time when demand is drying up and the last few get left on the developers' hands after they have moved their sales teams on, and a good deal can be struck.

When I heard about this, it struck me that if I ever wanted to live on a new  development, I would go in late when I could see what neighbours I would be getting!

If that is of any interest, I can contact a 'farang' who knows the score from the inside and put you in touch.

<{POST_SNAPBACK}>

I live in the Udon area and like it here most of time, which says a lot. I know very little of Khan Kean. I'm really open as to what type of house. Existing or to be built

[Martin]

We had some long threads on thaivisa.com about two years ago on the pros and cons of cities/towns/villages and build/ have built/buy built in the North East. I will try to dig them out, but bear with an IT illiterate.

[Martin]

One was: Pros And Cons Of Living In A City Or A Rural Area

and another was: Living In The North East, Isaan life as a farang

and there was: Water Heaters - Small Instantaneous Units

I tender my apologies that I am not sufficiently 'au fait' with IT to give you these as 'links', but if you paste them into Google you will get to them.

[Harmonica]

Thai economy likely to slow 

BANGKOK: -- The Thai economy is likely to slow in the next six months as a result of rising global crude oil price and foreign exchange volatility, especially in Chinese yuan, according to the Deputy Governor of the Bank of Thailand (BOT), Tarisa Watanagase.

Businessmen and investors should be more cautious in the next six months because these factors could severely affect the Thai economy, she said.

The BOT’s measures to control personal loans will come into force on 1 July, including charging borrowers an interest fee plus premiums of up to 28%, Mrs. Tarisa said.

These measures were introduced after it was found that non-performing loans (NPLs) in the personal loan business had increased, especially among the low-income group.

Personal loans now account for 3.5% of the financial institutions’ total lending.

--TNA 2005-06-26

Do birds fly?