Central Bank: Thai economy slowly recovering

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Central Bank: Thai economy slowly recovering
By Digital Content



BANGKOK, Nov 3 -- The Bank of Thailand (BoT) says that the Thai economy is picking up slowly.

It hopes for the quick disbursement of government budgets to stimulate the economy late this year.

Roong Mallikamas, BoT senior director for its Macroeconomic and Monetary Policy Department, said the Monetary Policy Committee will meet Wednesday to consider economic performance figures and the repurchase rate that was at 2 per cent annually year as the national economy in the third quarter recovered quite slowly and unclearly in all sectors.

Demand in the private sector play a greater role in driving the economy but low prices of farm products and high household debt are limiting consumption. In addition, slow government spending is limiting investment in the private sector, said Ms Roong.

She said the BoT hopes that government spending will improve in the rest of this year. The bank will review its national economic growth forecast on Dec 26.

At present, the central bank predicts the economy will grow by 1.5 per cent this year and 4.8 per cent next year.

However, demand for consumer products is gaining momentum in the private sector and the importation of such products is rising.

Meanwhile, consumers' confidence is growing continuously.

However, spending on durable goods, especially automobiles, has not recovered due to high household debt and strict lending controls by financial institutions.

According to Ms Roong, the value of Thai exports fell by 1.7 per cent in the third quarter although that in September rose by 2.2 per cent.

International demand for products has slowed because the economies of trading partners, especially European countries, Japan and Middle East nations, have not clearly improved.

Thailand also has limited production of high-technology products and is thus inferior to competitors. (MCOT online news)


-- TNA 2014-11-03

[kalbo123]

At present, the central bank predicts the economy will grow by 1.5 per cent this year and 4.8 per cent next year.

Based on?

[khunpa]

At present, the central bank predicts the economy will grow by 1.5 per cent this year and 4.8 per cent next year.

Based on?

A naive belief that if you face the facts, then you lose face! Everybody with common sense can see with their own eyes, that Thailand economy is heading only one way.... DOWN!

I believe, that we within the next 3-5 years will see a complete meltdown in Thai-economy, which will hopefully force the leaders (whoever they are) to put on an international out-look and understand that Thailand is not what they thought it was.

At current moment Thailand is driving itself directly into a wall and its biggest enemy is Thai-ness. Right now they are planning a new law to place even more restrictions on foreign owned Joint Venture companies, which basically mean that they are scaring away even more foreigners and investors.

This country is making and enforcing laws like its economy is booming, while the fact is that tourists and investors are running away. Add to that a housing bubble and you got the perfect receipt for an economic meltdown. Look around and you will see, it has already started but because of Thai-ness, it will take just a bit longer for people to realize what is actually going on.

[Christie Paul]

The world economy is slowing down. The Baltic Dry Goods Index trend is incontrovertible. But this is not Thailand's fault.

How it responds to the situation is however, quite bizarre.

Immigration and investment regulations/rules/bureaucracy and enforcement are increasingly hostile to legitimate grassroots stimulus.

The central bank is trying to be patriotic with its rhetoric and thus the positive yet contradictory and feeble press releases which will do little to encourage anyone who reads their statements carefully. To the contrary, to those who understand the terminology and the emphasis, they scream "run for exits".

[trogers]

The problem is with lending control. Should be strict during boom times and relaxed during bust times. After all, reverting to the mean means assets are overvalued during the time of boom, and undervalued during busts.

[chainarong]

Going slowly where, the conflicting media coverage about the Thai economy makes one well a-where of one particular thing , no one has a doodle dick idea what it is doing or where it is going, talking the economy up is a waste of time, as the old adage says , only believe half of what you hear and none of what you read, coming from Thailand this would be deemed to be true.

[Old Man River]

At present, the central bank predicts the economy will grow by 1.5 per cent this year and 4.8 per cent next year.

Based on?

A naive belief that if you face the facts, then you lose face! Everybody with common sense can see with their own eyes, that Thailand economy is heading only one way.... DOWN!

I believe, that we within the next 3-5 years will see a complete meltdown in Thai-economy, which will hopefully force the leaders (whoever they are) to put on an international out-look and understand that Thailand is not what they thought it was.

At current moment Thailand is driving itself directly into a wall and its biggest enemy is Thai-ness. Right now they are planning a new law to place even more restrictions on foreign owned Joint Venture companies, which basically mean that they are scaring away even more foreigners and investors.

This country is making and enforcing laws like its economy is booming, while the fact is that tourists and investors are running away. Add to that a housing bubble and you got the perfect receipt for an economic meltdown. Look around and you will see, it has already started but because of Thai-ness, it will take just a bit longer for people to realize what is actually going on.

A big wake up call is when ASEAN investors such as Singapore and Indonesia focus on VN and Myanmar, and not Thailand.

[Tazwa]

Not sure if the headline emphasis is supposed to go on the "Slowly" or "Recovering"

[ataloss]

The Baht, as always, seems unaffected!

[Tazwa]

Wow, just looked at the Russian exchange rate. Down 25% against the baht on last high season.

How attractive is Thailand going to be as a tourist destination this year?

Better still Ruskies, sell those Pattaya/Phuket condos and make 25% on the outgoing exchange rate!

[Chris Lawrence]

Wow, imagine going for this boffin’s job. Her half smile is unconvincing.

"We want you to face the public.

Here is the script.

But I have read it and you have not provided any data to back up your claims?

Don't worry it’s for the good of the country.

But I don't want to say something that is not true; I will never get another job anywhere as the country will see me as a fool?

Don't worry with us you have a job for life; we run the military and all arms of the government. We will just send you on an inactive post. You are part of the elite team now. You are protected."

What they need to do to build confidence is to provide figures that show what is happening in the economy. When they say trading partners figure had slowed, I thought it was because of sanctions due to human rights violations? Then there is the big hole the rice has put in the economy?