Thai Finance Ministry ponders economic stimulus for second half of 2013

[webfact]

Finance ministry ponders economic stimulus for second half of 2013
By English News



BANGKOK, July 1- New measures to stimulate Thailand’s economy will be issued in light of this year's declining economic growth, according to a high-ranking official.

Areepong Bhoocha-oom, permanent secretary for finance, said he would discuss economic stimulus packages for the second half of this year with related officials while rural government agencies will be instructed to speed up their budget use, both withdrawals and spending.

The Fiscal Policy Office (FPO) has lowere its projection of Thailand's 2013 economic growth to 4.5 per cent due to a slowdown in exports and termination of most government stimulus programmes, including tax reduction on first-car purchases, he said.

Domestic consumption fundamentals, however, remain positive, he added.

Mr Areepong expressed optimism that the Thai economy will bounce back given the depreciating baht which contributes to export growth, while more attention will be given to expanding exports to China – a country with considerable purchasing power.

He said the government should promote the country's ever-expanding tourism which can compensate for diminishing revenue from exports.

FPO director general Somchai Sujjapongse said the new forecast on economic growth, to be announced by other agencies, should be in accord with the FPO projection and should not be lower than 4 per cent.

This year’s export growth should not be less than 5.5 per cent thanks to the depreciating baht, he said. (MCOT online news)


-- TNA 2013-07-01

[Pib]

Time for economic stimulus?! I didn't know it was almost election time again.

[jaltsc]

"He said the government should promote the country's ever-expanding tourism which can compensate for diminishing revenue from exports."

So, what he's proposing is keeping all the young "masseuses" from rural areas in BKK and stop exporting them overseas?

[Robby nz]

So if rice had been exported as it should have been things would have been looking good.

[chooka]

"He said the government should promote the country's ever-expanding tourism which can compensate for diminishing revenue from exports."

So, what he's proposing is keeping all the young "masseuses" from rural areas in BKK and stop exporting them overseas?

or maybe he is hoping that all the farang tourists will keep coming so they can recoup the money lost on the rice scheme. Can't sell the rice so import some tourists and empty their wallets into the black hole.

[Tatsujin]

He said the government should promote the country's ever-expanding tourism which can compensate for diminishing revenue from exports.

I though tourism only accounted for (roughly) 5-6% of GDP? And how on earth will this help those who are losing money from exports?

[Neilly]

He said the government should promote the country's ever-expanding tourism which can compensate for diminishing revenue from exports.

Each tourist to be given a compulsory complimentary bag of rice ...that should clear some of the stock

[OzMick]

I know, let's put the price of rice back up!

[Bellweather]

"He said the government should promote the country's ever-expanding tourism which can compensate for diminishing revenue from exports."

So, what he's proposing is keeping all the young "masseuses" from rural areas in BKK and stop exporting them overseas?

or maybe he is hoping that all the farang tourists will keep coming so they can recoup the money lost on the rice scheme. Can't sell the rice so import some tourists and empty their wallets into the black hole.

No need to worry, TAT will " find " the tourists from somewhere, aren't they just flocking here ?

[chooka]

He said the government should promote the country's ever-expanding tourism which can compensate for diminishing revenue from exports.

I though tourism only accounted for (roughly) 5-6% of GDP? And how on earth will this help those who are losing money from exports?

Hire more Jet Ski operators, Silly.

[ggold]

Areepong Bhoocha-oom, permanent secretary for finance, said he would discuss economic stimulus packages for the second half of this year with related officials

while rural government agencies will be instructed to speed up their budget use, both withdrawals and spending.

Sounds like a coded message, especially the comment of speeding up withdrawals and spending, Who receives and who spends? Maybe he knows this government isn't going to be much longer!

[rubl]

Get extra money from tourists, like the mandatory insurance scheme? Why not spent a triffling billions on some infrastructure projects? A few more hundreds of billions on 'rice pledging'.

Is it me or does it seem that the Thai economy has been changing from 'peachy rosy' a few months ago to 'in need of stimulation' now. Could the early demise of our CMKelly be related to this

Edited July 1, 2013 by rubl

[bigbamboo]

Why the need for a risky economic stimulus package? Most country's would kill for anywhere near a 5 per cent export growth.

Unless Kittikat is telling porkies again....

[rubl]

"Areepong Bhoocha-oom, permanent secretary for finance, said he would discuss economic stimulus packages for the second half of this year with related officials"

Did someone already tell the PermSec that the second half of this year has started today? Mind you, the PermSec might already have preliminary GDP and import/export figures we normal people still have to wait for for another two weeks or so.

[PhilipCook]

"the government should promote the country's ever-expanding tourism which can compensate for diminishing revenue from exports" which means open the gates to everyone from everywhere at any price point. wait for it, it will become a vegas of sorts, 99 Baht buffet, 199 Baht rooms, 999 Baht airfare and double the current 20 million visitors, double the number of chinese buses, double the number of incidents of crime. it will probably double the number of thais going abroad for their holidays too, particularly peak season.

[Xonax]

More stimulous packages!!??

Just solve the pollution problem and clean up the beaches in Thailand and the tourists will may return to Thailand. I just went back from Khao Lak Beach last week, and here is some of the most ugly view´s I had:

http://www.flickr.com/photos/98248729@N07/

Edited July 1, 2013 by Xonax

[rubl]

"the government should promote the country's ever-expanding tourism which can compensate for diminishing revenue from exports" which means open the gates to everyone from everywhere at any price point. wait for it, it will become a vegas of sorts, 99 Baht buffet, 199 Baht rooms, 999 Baht airfare and double the current 20 million visitors, double the number of chinese buses, double the number of incidents of crime. it will probably double the number of thais going abroad for their holidays too, particularly peak season.

Obviously the PermSec was only referring to high-end tourists, those PM Yingluck urged and wished to get. Those Amply Rich tourists who are known to spent freely

[bubblegum]

"Mr Areepong expressed optimism that the Thai economy will bounce back given the depreciating baht which contributes to export growth, while more attention will be given to expanding exports to China – a country with considerable purchasing power."

Mr. Areepong, China is the last place you should be looking at. Only this year the borrowing by China at foreign bank went up by 40 % (yes 40 % in half a year) basically because Chinese banks don't trust each other anymore. The Chinese bubble is about to burst and Thailand is choosing the wrong side again (history repeats)

[Robby nz]

Areepong Bhoocha-oom, permanent secretary for finance, said he would discuss economic stimulus packages for the second half of this year with related officials while rural government agencies will be instructed to speed up their budget use, both withdrawals and spending.

Was wondering who the officials he will discuss it with are related to?

Speed up their budget use?

But its only half way through the year, should that not mean they should have only spent half or less than half of their budget?

If they do speed up the budget use and run out before the end of the year will the Govt top up for them so they can keep operating?

I would have thought fiscal responsibility would mean always having a reserve for emergencies.

But then I'm not the finance minister.

[Ricardo]

"the government should promote the country's ever-expanding tourism which can compensate for diminishing revenue from exports" which means open the gates to everyone from everywhere at any price point. wait for it, it will become a vegas of sorts, 99 Baht buffet, 199 Baht rooms, 999 Baht airfare and double the current 20 million visitors, double the number of chinese buses, double the number of incidents of crime. it will probably double the number of thais going abroad for their holidays too, particularly peak season.

Obviously the PermSec was only referring to high-end tourists, those PM Yingluck urged and wished to get. Those Amply Rich tourists who are known to spent freely

"Amply Rich tourists"

Are they the ones who have accepted free Thailand-Elite cards, in their rush, to spend money and help the economy here ?