Second quarter spending to boost employment

BANGKOK, 17 April 2015 (NNT) – The Deputy Prime Minister in charge of economic affairs has said that he expects increased employment due to government spending in the second quarter.

During his announcement on the government’s performance over the past six months, Deputy PM in charge of economic affairs Mom Rajawongse Pridiyathorn Devakula disclosed that the government had spent five percent of the state investment budget in the second quarter of fiscal year 2015. Public spending is expected to contribute to a hike in employment.

Regarding private investment during May, 2014 - March, 2015, operators were granted permission to build 4,911 factories worth over 400 billion baht. 3,549 factories are currently under construction. 343 billion baht of the state budget has been allocated to these projects, leading to job recruitment of more than 133,000 people.

Exports are likely to slip below four percent, due to the declining purchasing power of China, Europe and Japan. Nevertheless, the gross domestic product is expected to expand to three percent, thanks to robust tourism and service industries, which are expected to enjoy a growth of 15 percent.

The Deputy PM attributed the lackluster economy to the government’s social restructuring, which had an adverse effect on illegal businesses. He admitted that unlawful activities had a role in the economy.

However, the Deputy PM insisted that the social restructuring was essential. He voiced confidence that the reform agenda should pave the way for the country’s economy to move forward in a sustainable manner.


-- NNT 2015-04-17

More hawker stalls, street vendors and motorbike taxi jockeys?

oh dear...

"Nevertheless, the gross domestic product is expected to expand to three percent, thanks to robust tourism and service industries, which are expected to enjoy a growth of 15 percent."

NO

Exports, government spending, and domestic consumption contributes 90% GDP. Tourism and service industries only contribute 10% GDP. If the former is essentially little or no growth, the latter must have a growth of 30% to achieve a 3% total GDP growth rate. That is not going to happen.