Thai Economy Rebounds Strongly From Flood Crisis

[webfact]

Thai economy rebounds strongly from flood crisis

Bangkok, May 21, 2012 (AFP) - Thailand's economy posted double-digit growth in the first quarter of 2012, rebounding sharply from the fallout of last year's devastating floods, official data showed Monday.

Gross domestic product (GDP) grew 11 percent in January-March from the previous quarter, when the economy had contracted 10.8 percent, according to the National Economic and Social Development Board (NESDB).

GDP rose 0.3 percent compared with the same period in 2011.

The months-long floods last year killed hundreds of people and caused widespread damage to Thailand's industrial heartland north of Bangkok.

Investment by companies to get their plants back up and running is now helping to revive the economy, while the agriculture sector posted solid growth and consumer demand also rebounded in the first quarter, the figures showed.

At their height the floods affected 65 of the country's 77 provinces, deluged hundreds of thousands of homes and forced the closure of large industrial parks, disrupting global supply chains.

But with plants starting to reopen, the NESDB economic planning agency forecast economic growth of 5.5-6.5 percent for the whole of 2012.

The manufacturing sector has not yet returned to full strength, said Thanawat Polwichai, director of the Center for Economic and Business Forecasting at the University of the Thai Chamber of Commerce.

"Industry will recover further in the second quarter," he predicted.

But Thailand's economy is heavily reliant on exports so the eurozone debt crisis and slowing Chinese growth is expected to take its toll.

"The major risk for our recovery is the sluggish global economy, which may cause our exports to decline, while the manufacturing sector may face higher costs from increased wages and material prices," Thanawat said.

On May 11 the Bank of Thailand upgraded its forecast for the kingdom's economic growth this year to 6.0 percent, from a previous projection of 5.7 percent.

Earlier this month the central bank held its key interest rate steady at 3.0 percent, where it has been since January, to spur the economic recovery.

-- (c) Copyright AFP 2012-05-21

[Buchholz]

Thailand to import rubber

Thailand, the world's biggest rubber producer and exporter, will import rubber for the first time to meet deliveries at a time when domestic supply is tight because of the impact of unseasonal rains, The Thai Rubber Association said on Monday.

Prapas Uernontat, the president of the association, did not specify the exact amount of rubber that Thailand would import, but said it would be equivalent to the current Japan rubber stocks of around 15,000 tonnes.

Continues:

http://uk.finance.yahoo.com/news/1-thailand-import-rubber-tocom-032053722.html

BANGKOK, May 21, 2012 (Reuters)

Edited May 21, 2012 by cdnvic
fixed broken link

[vahack]

if the numbers are true then its somewhat impressive that there was a rebound. however most of that is rice income which is unaffected once flood waters recede. the stats above say gdp growth between Q1 2010 and Q1 2012 was only 0.2%. so the flood knocked out ALL other growth even in unaffected regions?

this is an optimistic sounding article but the stats show a different story. and so does the baht exchange rate.

[kerryk]

if the numbers are true then its somewhat impressive that there was a rebound. however most of that is rice income which is unaffected once flood waters recede. the stats above say gdp growth between Q1 2010 and Q1 2012 was only 0.2%. so the flood knocked out ALL other growth even in unaffected regions?

this is an optimistic sounding article but the stats show a different story. and so does the baht exchange rate.

Al Jazerra also did a very positive prime time news story a day ago with the same good news statistics and a live interview with the PM in English. It seems the only doomsayers about the Thai economy are the anti Red posters from Thai Visa. The rest should show up momentarily.

[retarius]

Since Yingluck and everyone in her government are totally incompetent, then this must mean that Thaksin rigged these figures from Dubai via sinister bribes to unsuspecting economists using government money. As every anti-redshirt on Thaivisa knows, the real economy actually tanked during Q1 declining by a massive 88%, and everybody became unemployed and cannot buy anything because everything is so expensive now (apart from Thaksin's corrupt cronies who really run the country and were able to carry on stealing and now have all the money in the country which they send to Thaksin via wire transfer every Monday morning)

[superduper]

What a misleading headline!!!!

The more important number here is that it increased a mere 0.3 percent from the same period in 2011. That is the true gauge of economic activity, not from a prior quarter that saw the economy grow to a standstill.

IN OTHER WORDS the Thai economy is in the dumps and was close to recession (which is two consecutive quarters of negative growth)... It's in fact a dismal showing and an indication that the Thai economy has yet to recover from the floods of 2011 or that demand has fallen off not only here in Thailand but also abroad.

[Time Traveller]

if the numbers are true then its somewhat impressive that there was a rebound. however most of that is rice income which is unaffected once flood waters recede. the stats above say gdp growth between Q1 2010 and Q1 2012 was only 0.2%. so the flood knocked out ALL other growth even in unaffected regions?

this is an optimistic sounding article but the stats show a different story. and so does the baht exchange rate.

Al Jazerra also did a very positive prime time news story a day ago with the same good news statistics and a live interview with the PM in English. It seems the only doomsayers about the Thai economy are the anti Red posters from Thai Visa. The rest should show up momentarily.

Not necessarily. If the economy is growing (and not just under under a rebound from a one off incident like the floods) but the government deficit is behind the growth (fiscal deficit larger than GDP growth), then is that really a sign of strength in the economy? If you listen to journalists and the news you will be led astray every time.

[Time Traveller]

What a misleading headline!!!!

The more important number here is that it increased a mere 0.3 percent from the same period in 2011. That is the true gauge of economic activity, not from a prior quarter that saw the economy grow to a standstill.

IN OTHER WORDS the Thai economy is in the dumps and was close to recession (which is two consecutive quarters of negative growth)... It's in fact a dismal showing and an indication that the Thai economy has yet to recover from the floods of 2011 or that demand has fallen off not only here in Thailand but also abroad.

Correct, and if you consider that the government's budget deficit is about 4% of GDP, then you see that if it were not for government spending more than they earn, then the Thai economic growth would be at minus 3.7%

But not as bad as Europe.

Edited May 21, 2012 by Time Traveller

[Phatcharanan]

Since Yingluck and everyone in her government are totally incompetent, then this must mean that Thaksin rigged these figures from Dubai via sinister bribes to unsuspecting economists using government money. As every anti-redshirt on Thaivisa knows, the real economy actually tanked during Q1 declining by a massive 88%, and everybody became unemployed and cannot buy anything because everything is so expensive now (apart from Thaksin's corrupt cronies who really run the country and were able to carry on stealing and now have all the money in the country which they send to Thaksin via wire transfer every Monday morning)

Can't deny though that the GDP only grew by a pitiful 0.3% between 2011 & 2012.

Sounds a bit like the West really.

[kerryk]

What a misleading headline!!!!

The more important number here is that it increased a mere 0.3 percent from the same period in 2011. That is the true gauge of economic activity, not from a prior quarter that saw the economy grow to a standstill.

IN OTHER WORDS the Thai economy is in the dumps and was close to recession (which is two consecutive quarters of negative growth)... It's in fact a dismal showing and an indication that the Thai economy has yet to recover from the floods of 2011 or that demand has fallen off not only here in Thailand but also abroad.

Great first post. Welcome to Thai Visa.

[kerryk]

Thailand to import rubber

Thailand, the world's biggest rubber producer and exporter, will import rubber for the first time to meet deliveries at a time when domestic supply is tight because of the impact of unseasonal rains, The Thai Rubber Association said on Monday.

Prapas Uernontat, the president of the association, did not specify the exact amount of rubber that Thailand would import, but said it would be equivalent to the current Japan rubber stocks of around 15,000 tonnes.

Continues:

http://uk.finance.yahoo.com/news/1-thailand-import-rubber-tocom-032053722.html

BANGKOK, May 21, 2012 (Reuters)

With the new Ford plant in Rayong expected to produce 500,000 vehicles a year it is not surprising Thailand would need more rubber for tires and parts made locally.

[superduper]

What a misleading headline!!!!

The more important number here is that it increased a mere 0.3 percent from the same period in 2011. That is the true gauge of economic activity, not from a prior quarter that saw the economy grow to a standstill.

IN OTHER WORDS the Thai economy is in the dumps and was close to recession (which is two consecutive quarters of negative growth)... It's in fact a dismal showing and an indication that the Thai economy has yet to recover from the floods of 2011 or that demand has fallen off not only here in Thailand but also abroad.

Correct, and if you consider that the government's budget deficit is about 4% of GDP, then you see that if it were not for government spending more than they earn, then the Thai economic growth would be at minus 3.7%

But not as bad as Europe.

Thanks for the welcome and compliments!

[kerryk]

if the numbers are true then its somewhat impressive that there was a rebound. however most of that is rice income which is unaffected once flood waters recede. the stats above say gdp growth between Q1 2010 and Q1 2012 was only 0.2%. so the flood knocked out ALL other growth even in unaffected regions?

this is an optimistic sounding article but the stats show a different story. and so does the baht exchange rate.

Al Jazerra also did a very positive prime time news story a day ago with the same good news statistics and a live interview with the PM in English. It seems the only doomsayers about the Thai economy are the anti Red posters from Thai Visa. The rest should show up momentarily.

Not necessarily. If the economy is growing (and not just under under a rebound from a one off incident like the floods) but the government deficit is behind the growth (fiscal deficit larger than GDP growth), then is that really a sign of strength in the economy? If you listen to journalists and the news you will be led astray every time.

"If you listen to the journalists and the news you will be led astray every time"So who should we listen to? The news has been reporting that the "PIGS" were in trouble for years. Are they wrong? The news also reports global stock market reports and currency transactions daily. Are they wrong? You gotta get better talking points.

[Buchholz]

Thailand to import rubber

Thailand, the world's biggest rubber producer and exporter, will import rubber for the first time to meet deliveries at a time when domestic supply is tight because of the impact of unseasonal rains, The Thai Rubber Association said on Monday.

Prapas Uernontat, the president of the association, did not specify the exact amount of rubber that Thailand would import, but said it would be equivalent to the current Japan rubber stocks of around 15,000 tonnes.

Continues:

http://uk.finance.ya...-032053722.html

BANGKOK, May 21, 2012 (Reuters)

With the new Ford plant in Rayong expected to produce 500,000 vehicles a year it is not surprising Thailand would need more rubber for tires and parts made locally.

Don't you mean 12,000 vehicles a year? Do they really need a tonne of rubber for each car?

Ford Thailand's passenger-car plant in Rayong will formally start up production on June 26.

Saroj Kiatfuengfoo, vice president of marketing, sales and service, said yesterday that the US$450-million (Bt14-billion) plant would focus on producing 1,000 units per month of the all-new Focus model.

http://www.nationmul...e-30180809.html

Edited May 21, 2012 by Buchholz

[hellodolly]

all I know is my dollar is worth more in Thailand now

[kerryk]

Thailand to import rubber

Thailand, the world's biggest rubber producer and exporter, will import rubber for the first time to meet deliveries at a time when domestic supply is tight because of the impact of unseasonal rains, The Thai Rubber Association said on Monday.

Prapas Uernontat, the president of the association, did not specify the exact amount of rubber that Thailand would import, but said it would be equivalent to the current Japan rubber stocks of around 15,000 tonnes.

Continues:

http://uk.finance.ya...-032053722.html

BANGKOK, May 21, 2012 (Reuters)

With the new Ford plant in Rayong expected to produce 500,000 vehicles a year it is not surprising Thailand would need more rubber for tires and parts made locally.

Don't you mean 12,000 vehicles a year? Do they really need a tonne of rubber for each car?

Ford Thailand's passenger-car plant in Rayong will formally start up production on June 26.

Saroj Kiatfuengfoo, vice president of marketing, sales and service, said yesterday that the US$450-million (Bt14-billion) plant would focus on producing 1,000 units per month of the all-new Focus model.

http://www.nationmul...e-30180809.html

Actually I was trying to remember, "Ford plans to purchase up to US$800 million worth of parts annually from Thailand to supply its new $450-million passenger vehicle plant in Rayong.Thailand serves as one of the key global production and export hubs for Ford Motor Company. Ford Thailand Manufacturing has an initial production capacity of 150,000 vehicles – increasing the company's annual capacity in Thailand to 445,000 – making Ford one of the largest producers and exporters of vehicles in the country.  The new Ford facility has the potential to support up to 11,000 new jobs – including 2,200 direct jobs with Ford and 8,800 indirect jobs through its supplier and dealer networks." But while I have you on the line. Why would you post an article about rubber imports and what does it have to do with the topic, "Thai economy rebounds strongly from the flood." You didn't say gross profit from rubber sales are down or really tell us anything about the flood and rubber profits. So what does it have to do with anything? Dollars and cents or baht and satung in the answer please as I already have had my dose of vague anti Red propaganda today.

[Buchholz]

With the new Ford plant in Rayong expected to produce 500,000 vehicles a year it is not surprising Thailand would need more rubber for tires and parts made locally.

Don't you mean 12,000 vehicles a year? Do they really need a tonne of rubber for each car?

Ford Thailand's passenger-car plant in Rayong will formally start up production on June 26.

Saroj Kiatfuengfoo, vice president of marketing, sales and service, said yesterday that the US$450-million (Bt14-billion) plant would focus on producing 1,000 units per month of the all-new Focus model.

http://www.nationmul...e-30180809.html

Actually I was trying to remember, "Ford plans to purchase up to US$800 million worth of parts annually from Thailand to supply its new $450-million passenger vehicle plant in Rayong.Thailand serves as one of the key global production and export hubs for Ford Motor Company. Ford Thailand Manufacturing has an initial production capacity of 150,000 vehicles – increasing the company's annual capacity in Thailand to 445,000 – making Ford one of the largest producers and exporters of vehicles in the country. The new Ford facility has the potential to support up to 11,000 new jobs – including 2,200 direct jobs with Ford and 8,800 indirect jobs through its supplier and dealer networks." But while I have you on the line. Why would you post an article about rubber imports and what does it have to do with the topic, "Thai economy rebounds strongly from the flood." You didn't say gross profit from rubber sales are down or really tell us anything about the flood and rubber profits. So what does it have to do with anything? Dollars and cents or baht and satung in the answer please as I already have had my dose of vague anti Red propaganda today.

Always best to cite your quote with a link as it'd be interesting to explore the conflict of 500,000 cars versus 12,000 cars for the plant in Rayong.

Why ask why I would I post the article in this thread?

The world's largest rubber exporter is now, for the first time ever, an importer of rubber. I'm not an economics expert, but it would seem to indicate that perhaps the economic rebound is not bouncing (pun intended) all that well in the rubber industry, a not unimportant component of the Thai economy.

I have no idea what your red shirt mumblings are about.

.

Edited May 21, 2012 by Buchholz

[kerryk]

Google is pretty easy. http://media.ford.com/article_print.cfm?article_id=36452

Ford Thailand Manufacturing has an initial production capacity of 150,000 vehicles – increasing the company's annual capacity in Thailand to 445,000 – making Ford one of the largest producers and exporters of vehicles in the country.

The topic is "Thai Economy rebounds strongly from flood crisis." What does Thailand buying rubber have to do with that? You wrote, "I'm not an economics expert, but it would seem to indicate that perhaps the economic rebound is not bouncing (pun intended) all that well in the rubber industry, a not unimportant component of the Thai economy." No it does not. It could be Thailand is using more rubber. Your post has nothing to do with the topic.

[phl]

The whole entire world should learn from Thailand, its politicians and economists

Nothing on this planet affects Thai economy, no protests, no airport closures, no floods, NOTHING

Truly AMAZING THAILAND with Truly AMAZING RESILIENT ECONOMY

[Buchholz]

Google is pretty easy. http://media.ford.com/article_print.cfm?article_id=36452

Including that in your original post is even easier and reflects proper netiquette as it precludes the necessity of asking for it or googling for it.

I appreciate your correcting your original statement of 500,000 vehicles for the Rayong plant to

Ford Thailand Manufacturing has an initial production capacity of 150,000 vehicles

[w11guy]

That the Thai economy grew 0.3% in the last year is pretty impressive given the floods of last year. If they had floods like that in somewhere like the UK then GDP would have been down 5-10%. Even a 2-day holiday for the queen's jubilee is expected to knock GDP by 0.5% (according to Bank of England). Imagine if they'd had months of flooding.

Not sure how you lot think 0.3% is bad considering what happened. The Thai economy will outgrow Europe and USA for many years to come. And their deficit and debt is extremely low. I would rather invest here than in Europe.

And economic growth for 2012 is likely to be around 6%. That's pretty impressive. You lot are a very negative bunch. Go take some happy pills.

Edited May 21, 2012 by w11guy

[kerryk]

That the Thai economy grew 0.3% in the last year is pretty impressive given the floods of last year. If they had floods like that in somewhere like the UK then GDP would have been down 5-10%. Even a 2-day holiday for the queen's jubilee is expected to knock GDP by 0.5% (according to Bank of England). Imagine if they'd had months of flooding.

Not sure how you lot think 0.3% is bad considering what happened. The Thai economy will outgrow Europe and USA for many years to come. And their deficit and debt is extremely low. I would rather invest here than in Europe.

And economic growth for 2012 is likely to be around 6%. That's pretty impressive. You lot are a very negative bunch. Go take some happy pills.

Of course you are correct. Anyone with half a brain knows that. What you are experiencing here is the anti red brigade which is slagging off anything to do with the PM or current Thai government. You get reactions everywhere from, "you can't trust journalists, to Thailand is importing rubber Oh my bad news! Thai economy is in the dumps and was close to recession, Yingluck and everyone in her government are totally incompetent. The anti government brigade can't seem to find any good news about anything in Thailand as long as the current government is in power. Of course the Thai economy is doing well. If all the politicians on both sides would go home and beat their dogs it would still do well. Closing the airport or burning down shopping centers or floods of course don't help. Think of what would happen if the rich of Thailand and the poor of Thailand and mother nature were not all plotting against Siam.

[Buchholz]

What you are experiencing here is the anti red brigade which is slagging off anything to do with the PM or current Thai government.

How very odd... considering you're the only one mentioning Reds in this thread.

[Chris Lawrence]

This Govt could go on and do better than Mr T's period.

Mr T's growth was 4% pa from 2000 to 2007.

[OzMick]

What a misleading headline!!!!

The more important number here is that it increased a mere 0.3 percent from the same period in 2011. That is the true gauge of economic activity, not from a prior quarter that saw the economy grow to a standstill.

IN OTHER WORDS the Thai economy is in the dumps and was close to recession (which is two consecutive quarters of negative growth)... It's in fact a dismal showing and an indication that the Thai economy has yet to recover from the floods of 2011 or that demand has fallen off not only here in Thailand but also abroad.

Great first post. Welcome to Thai Visa.

I'm a little confused. This post contradicts the positive view that you have earlier posted, yet "It seems the only doomsayers about the Thai economy are the anti Red posters from Thai Visa."

[mca]

The manufacturing sector has not yet returned to full strength, said Thanawat Polwichai, director of the Center for Economic and Business Forecasting at the University of the Thai Chamber of Commerce.

"Industry will recover further in the second quarter," he predicted

.

Director of the Center for Economic Forecasting at the University of the Thai Chamber of Commerce? What the <deleted> does he know?

When I want the low down on the world of finance in LOS I log onto TV and allow an ex plumber from Huddersfield with 2 failed marriages and 3 Thai bar brass, err I mean girlfriends behind him, propping up a bar in Pattaya whilst attempting to drink himself to death to give me the real skinny!

Edited May 21, 2012 by mca

[birdpooguava]

What you are experiencing here is the anti red brigade which is slagging off anything to do with the PM or current Thai government.

How very odd... considering you're the only one mentioning Reds in this thread.

But he's right.

[Buchholz]

What you are experiencing here is the anti red brigade which is slagging off anything to do with the PM or current Thai government.

How very odd... considering you're the only one mentioning Reds in this thread.

But he's right.

So am I.

or at least I was until you entered the thread.

.

Edited May 21, 2012 by Buchholz

[pastitche]

What you are experiencing here is the anti red brigade which is slagging off anything to do with the PM or current Thai government.

How very odd... considering you're the only one mentioning Reds in this thread.

But he's right.

So am I.

or at least I was until you entered the thread.

.

So now you are wrong?

[Buchholz]

How very odd... considering you're the only one mentioning Reds in this thread.

But he's right.

So am I.

or at least I was until you entered the thread.

So now you are wrong?

Indeed, I am... with your addition, the pro-Reds have sufficiently derailed the thread complaining about non-existent anti-Red postings.

.