BOT: Thai economy improving in North, slowing in South
By Digital Content
 


BANGKOK, Aug 4 -- The Bank of Thailand (BoT) reported that in the second quarter the economy in the North improved but that of the South remained the same.

Somsak Wongpanyathaworn, BOT Northern Region Office director, said the economy there was better than in the first quarter of this year because the political situation was relieved and government policies were clear.

In the second quarter, exports of important industrial products rose by nearly 13 per cent, most destined for Southeast Asian nations.

The export of consumer products to Myanmar soared during the period, and consumer spending also improved.

Rice growers had more purchasing power after receiving long overdue payment for their pledged rice. However, the volume of agricultural products dropped due to the declining production of rice and sugarcane due to drought and falling prices.

Tourism in the North picked up in late in the second quarter as the number of Chinese visitors grew by nearly three times.

Air passengers using Chiang Mai Airport rose by 25 per cent year-on-year, Mr Somsak said.

The economic outlook in the North is bright in the second half of this year due to the economic trends of China and neighboring countries, improving tourism, the expected prices of important economic plants and the roles and spending of the government.

Meanwhile, Pruitipong Srimachan, director of the BoT Southern Region Office, said the southern economy remained the same in the second quarter compared with the first.

Tourism and the prices of local farm products dropped, while natural rubber prices remained low.

The affected incomes of local farmers and declining exports in the South caused most operators to take careful consideration on their spending.

Unemployment increased while inflation grew due to the prices of ready-to-eat foods and energy.

Meanwhile, the political situation prompted many countries to intensify their travel advisories about Thailand'd South.

He said the number of tourists visiting the South decreased 5.3 per cent from the previous quarter, in part because of the insurgency related explosion in Hat Yai district of Songkhla province. The local hotel occupancy rate currently stands at 54.1 per cent.

However, Mr Pruitipong said that tourism in the southern provinces facing the Andaman Sea expanded due to the growing number of tourists from China, Russia and Australia. (MCOT online news)

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economy improving in North, slowing in South

 

Sounds like Blighty....

All I see are rice farmers making more money. How about the nightlife in Chiang Mai? Is that growing so the tourist get a good experience along with CM receiving much more money from them?

How fortune has changed. The South was the region that grown the fastest in the last 50 years benefitting from rubber and palm oil while the North being an agri region remained poor. The South had then a higher per capital income and a growing middle income. This has changed since Taksin came into power and introduced economic policies that has now bearing fruits. The North has been outpacing the South and even Bangkok in terms of economic development in the last 10 years.With the infrastructures that will focus mainly in the North and North East, will be the engine of growth for Thailand for next decade and beyond. With a large population, land mass, industralisation and proximity to markets and now connectivity,the North will prosper while the south economy will lanquish depending only on rubber and oil palm for a long time. Politics will change dramatically with the rise of the middle income in N and NE regions and Taksin will be glad that his vision for the N and NW is slowly but surely taking shape. He will be hard to dislodge.

Bloomberg publised the July prelim tourist stats (BOT source) and it was down by 24,4% nation wide, with an occupancy rate of +- 40,8% ? This followed monthly decreases since March.

 

Eric Loh, in actual fact the north and Isaan have out grown the rest of the country for the last decade, much of the growth is due to cross border trade.

Bloomberg publised the July prelim tourist stats (BOT source) and it was down by 24,4% nation wide, with an occupancy rate of +- 40,8% ? This followed monthly decreases since March.
 
Eric Loh, in actual fact the north and Isaan have out grown the rest of the country for the last decade, much of the growth is due to cross border trade.

With AEC opening, the border trade is expected to grow to 2T Baht in 2015. That is an impressive number considering GDP of the country is at 11.35T. 20+ % GDP contributed by the cross border trade with Cambodia, Mynmar, Laos and South China. With these primary commodities, we can expect investments on processing factories and again multiplier economic benefits even including domestic spending. I am glad the General recognized this massive economic potential and agreed to allow the infrastructure projects to proceed.