The Thai Economy Has Slowed Down

[Jai Dee]

ADB SAYS HIGH OIL PRICES AND DROUGHT HAVE CAUSED THE THAI ECONOMY TO SLOW DOWN

The director of the Asian Development Bank office in Thailand has said that expensive oil and the recent drought have caused the Thai economy to slow down, but he noted that the mega projects will help the economy's expansion during the next 2 years.

Mr. Joan Pierre Verbis (ฌอง ปิแอร์ เวอร์บิสต์), the director of the ADB office in Thailand, stated that ADB's analysis of Asian economies indicated that Thailand's inflation rate has expanded faster than expected, as high as 3.6%. According to ADB, the rise in inflation has been caused by the drought and the high oil prices. Meanwhile the trade account balance and the current account balance have declined much more than expected, with the likelihood of recording a deficit this year. However, ADB noted that Thailand's economic growth should rise in 2006, due to accelerated state spending, especially the mega projects. The bank expects the Thai economic growth to move to 5% in 2006, which is a figure revised from the earlier 5.8% predicted in the report.

The director further said that the Thai economy is volatile to increases in oil prices. He said a 10 USD per barrel increase in oil price would affect the Thai GDP by 1-1.5%. Nevertheless, he was confident the oil prices will not rise to the point that the economy will not be able to handle them. In the meantime, he warned that despite the necessity in mega projects investments that will encompass 1.7 trillion baht by 2009, the financial balance and international account balance could be affected without proper management.

Source: thaisnews ประจำวันศุกร์ที่ 9 กันยายน 2548

[chico]

ADB SAYS HIGH OIL PRICES AND DROUGHT HAVE CAUSED THE THAI ECONOMY TO SLOW DOWN

The director of the Asian Development Bank office in Thailand has said that expensive oil and the recent drought have caused the Thai economy to slow down, but he noted that the mega projects will help the economy's expansion during the next 2 years.

Mr. Joan Pierre Verbis (ฌอง ปิแอร์ เวอร์บิสต์), the director of the ADB office in Thailand, stated that ADB's analysis of Asian economies indicated that Thailand's inflation rate has expanded faster than expected, as high as 3.6%. According to ADB, the rise in inflation has been caused by the drought and the high oil prices. Meanwhile the trade account balance and the current account balance have declined much more than expected, with the likelihood of recording a deficit this year. However, ADB noted that Thailand's economic growth should rise in 2006, due to accelerated state spending, especially the mega projects. The bank expects the Thai economic growth to move to 5% in 2006, which is a figure revised from the earlier 5.8% predicted in the report.

The director further said that the Thai economy is volatile to increases in oil prices. He said a 10 USD per barrel increase in oil price would affect the Thai GDP by 1-1.5%. Nevertheless, he was confident the oil prices will not rise to the point that the economy will not be able to handle them. In the meantime, he warned that despite the necessity in mega projects investments that will encompass 1.7 trillion baht by 2009, the financial balance and international account balance could be affected without proper management.

Source: thaisnews ประจำวันศุกร์ที่ 9 กันยายน 2548

<{POST_SNAPBACK}>

doesn't look to bad for the future, if the expectations are higher than before.

drought occurs almost every year, sometimes more, sometimes less, it's part of the life.

and oil prices affect every eonomy, although the GDP should not be too much affected by them, as they rarely stay very high for too long.

compare to europe or america, gas is still cheap, and with additional spending by the government, income will be higher, so that people can diggest the realistic gas prices, although I agree that subsidized prices made it much easier to make money, unfortunately mostly for the already rich ones.

[sriracha john]

He's putting a lot of emphasis on the mega-projects to turn things around... what's the effect on the 2006 and later economies if some or most fall through the cracks, can't get funded or so are so riddled with corruption that they negate any positives to the economy???... A good example as such is the already

"cancelled/no, not cancelled merely modified" rail lines projects... from jaidee's other thread.

Inflation, rising interest rates, trade deficits, budge deficits... things aren't looking too rosy.

[chico]

He's putting a lot of emphasis on the mega-projects to turn things around... what's the effect on the 2006 and later economies if some or most fall through the cracks, can't get funded or so are so riddled with corruption that they negate any positives to the economy???... A good example as such is the already

"cancelled/no, not cancelled merely modified" rail lines projects... from jaidee's other thread.

Inflation, rising interest rates, trade deficits, budge deficits... things aren't looking too rosy.

<{POST_SNAPBACK}>

not so good for thais and people earning money here, if economy takes a bad hit, but personally would love to see the exchange rate euro : baht 70 : 1!

[sriracha john]

hey, it'd be great when... errr.. IF the dollar hits 70 as well... but I don't need it nearly as much as the Thais need some financial improvement through sound leadership.

If it's to improve the stability of Thailand, I can do with less...

[chico]

hey, it'd be great when... errr.. IF the dollar hits 70 as well... but I don't need it nearly as much as the Thais need some financial improvement through sound leadership.

If it's to improve the stability of Thailand, I can do with less...

<{POST_SNAPBACK}>

luckily I can still afford at least one chang per week, and some 'rice' for my dogs, but it still would be nice.

although me too pitty the people, especially those around where we live (Burirum/Surin), as they don't have much else to eat than rice, and this year it was not sure (until last week) if they would have any crop - now it looks by far better, although they don't have it yet! inchalla! ( but don't take me for a muslim!)