Government Stimulus A Blessing To Thailand's G D P Growth

[webfact]

Government stimulus a blessing to Thailand's GDP growth

By Digital Media

BANGKOK, Dec 27 – Thailand’s gross domestic product (GDP) this year is adjusted upward slightly from 5.5 per cent to 5.7 per cent mainly due to the government stimulus actions in various projects, according to the Finance Ministry.

Somchai Sujjapongse, director general of the Fiscal Policy Office, said domestic consumption is its highest in eight years given the government policy on the Bt300 daily minimum wage, a salary increase for civil servants, the rice pledging scheme, tax exemption for first time car buyers and first time homeowners, and the gradual reduction of corporate income taxes.

He said Thailand’s growing export volume in the last three months will contribute to an export expansion to 4.5 per cent from an earlier estimation of 3.9 per cent.

Consumption in the private sector rose by 5.6 per cent from the original prediction of 3-4 per cent while private investment has increased from 14.1 per cent to 16.1 per cent.

It was earlier estimated that foreign tourists to Thailand this year would be 21.7 million people but the latest report showed 22 million visitors and that the inflation rate will be 3 per cent – a decline from last year in accord with the global trend of cheaper oil prices and commodities, Mr Somchai said.

The unemployment rate is 0.6 per cent and public debt 43.9 per cent – lower than the fiscal consolidation of 60 per cent.

He projected next year’s economic growth at 5 per cent thanks to the reduction of corporate income tax to 20 per cent and personal income tax and the government’s massive investment . (MCOT online news)

-- TNA 2012-12-27

[ChrisY1]

Just have to keep these amazing stimulus programs going into next year and beyond.....obviously, it's a recipe for economic success......spend more..borrow more..reduce taxes..rice buying schemes....free tax on first car and home buyers.......and make sure all the cronies and relatives get a good healthy share from the trough and she'll be right mate.........can't see any problems ahead at all...just a fine example of a model government and economic policy by any standards!

[Thai at Heart]

public debt 43.9 per cent –

I would like to believe it, but someone needs to read the fine print on this one. I has to have increased more than this, unless of course the rice pledge is "off" the balance sheet.

[hanuman2543]

And how Thailand is doing in the "real world" without all this little "advantages" and how are the real numbers concerning public debt, unemployment etc?

Edited December 27, 2012 by hanuman2543

[lungmi]

An information made by white-lies chickens?

[bigbamboo]

And that's Numberwang!

[Nickymaster]

public debt 43.9 per cent –

I would like to believe it, but someone needs to read the fine print on this one. I has to have increased more than this, unless of course the rice pledge is "off" the balance sheet.

All long as the rice hasn't been sold, nobody's knows what it is worth (PT logic). I bet you that they have not taken the potential loss of 150 BILLION/year into account. That is the reason they are not selling.

[chiangmaikelly]

And how Thailand is doing in the "real world" without all this little "advantages" and how are the real numbers concerning public debt, unemployment etc?

Check with the real world reporting agency Standard and Poors.

[swifty5x5]

Can anybody tell me how the heck they come up with an unemployment rate of 0.6 percent. There are plenty of young men in the villages around here that do nothing 100 percent of the time.

[khunken]

And how Thailand is doing in the "real world" without all this little "advantages" and how are the real numbers concerning public debt, unemployment etc?

Check with the real world reporting agency Standard and Poors.

You mean one of those who got the 2008 credit swap disaster wrong?

[rubl]

He said Thailand's growing export volume in the last three months will contribute to an export expansion to 4.5 per cent from an earlier estimation of 3.9 per cent.

An earlier estimation of 3.9%? In August we still had

"Ms Kulaya said the value of exports in the first half of this year declined by 2%. She said the Finance Ministry will adjust the export target in September to take into account last month's lower than expected export growth. The current target is at 12.8%."

http://www.steelguru...012/276558.html

[chiangmaikelly]

And how Thailand is doing in the "real world" without all this little "advantages" and how are the real numbers concerning public debt, unemployment etc?

Check with the real world reporting agency Standard and Poors.

You mean one of those who got the 2008 credit swap disaster wrong?

Ya that's the one. The entire financial world depends on the Standard and Poors. Do you have a better one?

[AleG]

Consumption in the private sector rose by 5.6 per cent from the original prediction of 3-4 per cent while private investment has increased from 14.1 per cent to 16.1 per cent.

I wonder if this is adjusted for inflation.

[Rancid]

So this genius figured out that government spending is calculated into GDP? Well in that case then surely the more the government spends then the higher GBP? Right to a degree. Until of course they can't afford it anymore as the government sector of the economy grows too large often competing with private industry for financing and generally being inefficient. This is what a lot of the idiots in the west are discovering, they can't get off the tigers back. It never has ended well in history and will not this time either. I notice Mark Faber suggests that although SE Asia is in a housing bubble that cannot last that he s believes it is better situated to ride out the worldwide economic mess coming, that could be good news for expats here.

[Mudcrab]

Can anybody tell me how the heck they come up with an unemployment rate of 0.6 percent. There are plenty of young men in the villages around here that do nothing 100 percent of the time.

Easy...when there is no system of "dole" (unemployment social security) payments then it follows that there is no unemployment. Simple.

Other governments (Australia in particular) hide the true unemployment rate by transferring people to sickness benefits or a mutlitude of other "pensions".

Edited December 27, 2012 by Mudcrab

[Potosi]

And how Thailand is doing in the "real world" without all this little "advantages" and how are the real numbers concerning public debt, unemployment etc?

GDP is about the size of Denmark's, less than a tenth of Thailand's population. It's quite unbelievable because Denmark is laid back and very clean, while Thailand is seemingly buzzing with business activity, and not so clean. Some believe Thailand is the center of the universe, but the numbers don't support it.

Edited December 27, 2012 by Potosi

[jerrysteve]

WOW...The land of MILK and HONEY; Milking the Public for all the Honey they can get!

Nothing but Blue Skys all the Way...in the LAND OF GOOD & Plenty..

yessir yessir yessir!!

n

[jerrysteve]

WIZARDS 1 and All...ALL those cars in that picture are on the way to the Wizard of Oz too!

Edited December 27, 2012 by jerrysteve

[jerrysteve]

zip-a-doo-dah, zip-a-dee-ay.

[jerrysteve]

The Only Blessing is to the Schemers who drew-up their PERSONAL CONFIDENCE SCHEMES of Obtaining More Wealth; double-faced internal traitors of their their own people and country.

[chiangmaikelly]

And how Thailand is doing in the "real world" without all this little "advantages" and how are the real numbers concerning public debt, unemployment etc?

GDP is about the size of Denmark's, less than a tenth of Thailand's population. It's quite unbelievable because Denmark is laid back and very clean, while Thailand is seemingly buzzing with business activity, and not so clean. Some believe Thailand is the center of the universe, but the numbers don't support it.

So you are the expert? How about reading Bloomberg? Better source? Gross domestic product increased 3 percent in the three months through September from a year earlier, after expanding a revised 4.4 percent in the previous quarter, the National Economic and Social Development Board said in Bangkok today. The median of 13 estimates in a Bloomberg News survey was 3 percent.

We’re pretty upbeat on Thailand for 2013,” Matthew Circosta, an economist at Moody’s Analytics in Sydney, said in a Bloomberg Television interview. “We’ve got these government subsidies and policies which are boosting household incomes, and that will certainly support private consumption,” he said, adding that an improving global economy will also help lift Thai exports next year.

[chiangmaikelly]

WOW...The land of MILK and HONEY; Milking the Public for all the Honey they can get!

Nothing but Blue Skys all the Way...in the LAND OF GOOD & Plenty..

yessir yessir yessir!!

n

Nissan Motor Co., Japan’s second-largest carmaker, this month announced a plan to invest 11 billion baht to build a second factory, while Toyota Motor Corp. said it expects sales in Thailand to increase 72 percent this year to a record. Thailand’s economy, the biggest in Southeast Asia after Indonesia, grew 1.2 percent last quarter from three months earlier, compared with a revised 2.8 percent increase in the previous period.

Southeast Asia’s growth will remain resilient over the next five years as stronger investment and private consumption reduce dependence on exports for expansion, the Organization for Economic Cooperation and Development said in a report yesterday. Expansion in most Asian economies will probably rebound in 2013, Asian Development Bank President Haruhiko Kuroda said last week.

[Thai at Heart]

It's all relative.

As long as they bumble along with public debt to GDP of less than50% this place won't even get remotely close to collapsing.

Even to 55 they are still very secure. Let's see the numbers.

[Thai at Heart]

public debt 43.9 per cent –

I would like to believe it, but someone needs to read the fine print on this one. I has to have increased more than this, unless of course the rice pledge is "off" the balance sheet.

All long as the rice hasn't been sold, nobody's knows what it is worth (PT logic). I bet you that they have not taken the potential loss of 150 BILLION/year into account. That is the reason they are not selling.

As I understand it is held by yes agriculture bank with government guarantee. Sort of a Fannie Mae deal. Off the books.