Thai Trade Deficit Will Not Affect Overall Economy

[Jai Dee]

FINANCE MINISTER SAID LAST MONTH'S TRADE DEFICIT WILL NOT AFFECT THE OVERALL ECONOMY

Finance Minister Tanong Pittaya (ทนง พิทยะ) expressed confidence that the 1% trade deficit will not affect the country’s overall economy, as long as political stability remains. Dr. Tanong said that he is not worried about the trade deficit in October as it accounts only 1% in Current Account Deficit. He said that the deficit resulted from expanding investments in October, adding that trade transactions are still on balance and the Thai currency is still in good shape at 40.5 - 41.5 baht per dollar. He added that exports also remain healthy.

As for a comment made by J.P Morgan President Marco Sujaritkul (มาร์โค สุจริตกุล) that internal political situation in the country will affect Thai economic conditions, the Finance Minister said that the political situation is still very stable. He said that Thailand is a democratic country, and it is normal for people to organize demonstrations.

Source: Thai National News Bureau Public Relations Department - 24 November 2005

[GuestHouse]

This is what is known as a veiled accusation.

'So long as the political situation remains stable'

Well ... Yes, this is always true but under the current circumstances it is laying the ground for the CEO to stamp on disent on the basis that he is acting for the good of the country.

This is what nationalists do, the attach their needs and objectives to the good of the country, criticism of them becomes criticism of or acting against the good of the country.

Wake up Thailand... <deleted>.

[george]

Stock market to recover if political woes ease, says SET chief

BANGKOK: -- The investment sentiment in the Stock Exchange of Thailand will recover and turn bullish again if current political woes ease since the country’s economic fundamental remains sound at present, according to SET’s President Kittirat Na Ranong.

He said the continued fall in the SET’s index for this moment did not stem from the country’s economic fundamental change. It resulted from impacts from a natural disaster, disease outbreak, social confusion and conflict, and internal political woes.

He believed the stock market would turn bullish once these negative factors had eased given the fact that the economic fundamental is still strong.

Mr. Kittirat ruled out a rumor on a coup d’etat, saying he did not believe it would happen because it is unacceptable in the current globalization era.

Whoever had staged the coup now would face strong resistance both internally and externally. A power-that-be, who is capable to do that, could understand such an action would not benefit the country.

He conceded the Thai society remained fragile and sensitive to any rumors.

“Actually, the economy remains sound this year and stock prices should rally. But the sentiment has been dampened by current political woes.

“On a coup rumor, it is impossible anyone wants to stage it because it is unacceptable among people.

“However, it is a good opportunity for some investors to accumulate blue-chip stocks if their prices fall upon the rumor,” he said.

He projected the economy and stock market would continue to grow at a satisfactory level despite the upward interest trend.

The current interest hike stemmed from the economic expansion, not from higher inflation rates as many worried, he said.

--TNA 2005-11-24