Thai central bank lowers 2014 GDP to 3%

[Lite Beer]

Thai central bank lowers 2014 GDP to 3%
By Digital Content

BANGKOK, Feb 7 – The Bank of Thailand (BoT)'s Monetary Policy Committee today announced the adjustment of the country’s gross domestic product (GDP) this year from the originally projected 4 per cent to 3 per cent due to the sluggish economy.

BoT spokesperson Roong Mallikamas said non-performing loans have been low – a positive sign thanks to caution among lenders and borrowers, and households’ disciplined spending.

Commercial banks have been more careful in extending loans and help small- and medium-sized customers in operating their businesses, she said.

The growth of household debts has been slow since early this year, mainly from loans on car purchase, tourism and education.

She said inflation rate has not lowered, but slightly increased last month to 1.93 per cent from 1.67 per cent in December, partly resulting from energy cost.

Deflation is highly unlikely to materialise based on a 1.2 per cent increase in manufacturing price index last month due to weakened exchange rate, the central bank spokesperson said.

Business operators predicted inflation in the next 12 months will be within the range of 3-4 per cent, almost similar to cost increase – a factor that impedes them from setting product prices too high, but the BoT predicted this year’s inflation at 2-3 per cent, said Ms Roong.

She said the central bank spotted no unusual movement of capital and manoeuvring of the currency since Sunday’s general election. (MCOT online news)

-- TNA 2014-02-07

[onni4me]

thanks to caution among lenders and borrowers, and households’ disciplined spending.

I got this far without having to laugh.

I have witnessed unusually quiet New Year, Chinese New Year and generally people seem to have no money to spend. Good example is a housing estate I visit regularly. Couple of years ago people seemed to enjoy a little barbecue outside their houses after sunset with couple of beers or whatever. Now everybody stay inside their houses and don't seem to do anything for fun.

Wednesday visited Udon Thani and went to UdTown to eat something. Quite many people but very few eating anything except Som Tam. No plastic bags seen after purchases and a Japanese styled buffet we attended had more waiters and waitresses than customers. Okay, it was not weekend but still I feel they were not doing great.

I have my suspicions about sustainability of Thai economy. I see teachers and people with 'reasonable' incomes buying cars etc. and still when they would like to have somewhere to stay they are looking the cheapest option in a form of a shack or something in case they need to rent a place close to work. Their comfortable price level is very low, around 1000-1500 Baht. Here in Esaan one can find something even with that money but I guarantee there is no hot water or air-con.

What I mean that I see - or am believing I am seeing - some evidence of overspending and debt. It is really as the adage goes in my old country. Cars go out to town, shacks don't.

[IsaanUSA]

Seems like a short article for a big decision. What about factory output, rice sales, and other manufacturing? A 25% drop is huge

[Ticker2000]

Hmmmmmm

LOS of smiles a bit up the……. all round at the moment.