Bank of Thailand sees sustained growth for economy in 2016

[webfact]

Central bank sees sustained growth for economy in 2016



BANGKOK: -- Thailand's economy next year will continue to experience sustained growth, primarily driven by increased public investment, according to the central bank governor.

Bank of Thailand governor Wirathai Santipraphob commented on the country’s economic outlook for 2016 saying that there was a strong likelihood that the economy will enjoy sustained growth.

However he stated that this growth will not be evenly spread as many provinces economic development is still dependent upon the drought situation.

This will force agricultural prices down which will in turn affect the incomes of farmers.

The governor also stated that he was also concerned with household debt which at present is still high.

This factor could critically stall economic recovery but that he was confident that increased public investment by the government should be able to drive growth.

Furthermore, he said the government’s economic stimulus packages already in place should see positive results in the coming year.

Taken alongside the continued growth in the tourism sector, Thailand’s economy should experience positive growth in 2016, he added.

Source: http://englishnews.thaipbs.or.th/central-bank-sees-sustained-growth-for-economy-in-2016


-- Thai PBS 2015-11-13

[Strangebrew]

As usual BOT is day late dollar short Kasikorn bank said this yesterday. Supply and demand is what drives growth Not BOT saying what is going to or not going to happen. Drought reduces supply so prices go up do to lack of supply. Poor planning is the fuel for poor performance. And with knuckleheads at the helm this ship will run aground for sure.

[NCC1701A]

kicking the can down the yellow brick road...

[Hawk]

Again, full of maybes, shoulds, ifs etc. Anyway, its happy day again, its friday children.

[webfact]

BoT says Thai economy continue to grow

BANGKOK, 13 November 2015 (NNT) - The Bank of Thailand (BoT) believes the Thai economy will continue to recover, but voiced concern over the persisting drought crisis.

BoT Governor Veerathai Santiprabhob said the drought crisis will remain a key factor of economic growth, as rural household income has declined due to the lack of water for farming activities. He also blamed household debt as another major factor of the economic slowdown.

The BoT Governor further stated that the Thai economy continues to be susceptible to foreign monetary policies especially in the U.S., Europe and Japan. These foreign policies will likely cause further currency volatility, as foreign leaders try to restore their nations' economies.

However, Dr. Veerachai added that government investment plans and its economic stimulus measures should cause noticeable growth in the third quarter fiscal 2016, despite a slump in the tourism sector.


-- NNT 2015-11-13

[Mr Creosote]

And in other news, full world peace is expected in 2016 and expected to last for a decade or more.

[thesetat2013]

As usual BOT is day late dollar short Kasikorn bank said this yesterday. Supply and demand is what drives growth Not BOT saying what is going to or not going to happen. Drought reduces supply so prices go up do to lack of supply. Poor planning is the fuel for poor performance. And with knuckleheads at the helm this ship will run aground for sure.

Agreed but isn't even .00001% considered growth? They may be correct in their assumption.

[worgeordie]

Drought ,and agricultural prices will fall ! everywhere else in

the World when theres a drought prices rise,as there will be

a shortage of foodstuffs,do these people really know what they

are talking about.

regards Worgeordie

[siliconvalley]

Wow. Ok. The farmers will have to expect lower rice prices. Now 8 baht. Break even is 7 baht. Two, the government is bettinng on the come line. Chinese tourism and investment collaboration and LOANS. Ok. Thailand is in the process of mortgaging their future at the sacrafice of their major export, rice. The next preview is increase in military spending. Via Chinese. Now I understand the word Pawn.

Now that its high season the Kamala police are all enforce. Every farang is targeted. Last week at the Black Cat 15 police came in with their $hit eaten smile, Pay Day. Implosion.

I am not sure which way is up. And I am sure we or those for what ever reason love this country, as do I. But God gave us the tools. It's just Thailand can be the Wizard of Oz.

[Thai at Heart]

If agriculture volumes are down because of drought shouldn't that push prices up?

[elgordo38]

Drought ,and agricultural prices will fall ! everywhere else in

the World when theres a drought prices rise,as there will be

a shortage of foodstuffs,do these people really know what they

are talking about.

regards Worgeordie

Don't laugh the general is pleased with this fellow. He will more than like get the nincompoop award of the year.

[soalbundy]

If agriculture volumes are down because of drought shouldn't that push prices up?

It would do if they had any rice to sell. It doesn't matter to the government they still have plenty in store that they want to sell, blessing in disguise for them.

[Thai at Heart]

If agriculture volumes are down because of drought shouldn't that push prices up?

It would do if they had any rice to sell. It doesn't matter to the government they still have plenty in store that they want to sell, blessing in disguise for them.

The stuff they have left is 3 and 4 years old. It might be good for Lao kao, and not much else.

[waldroj]

Bankers in Thailand must have crystal balls!

First NNT reports, on 11 November, that the head of KBank Capital-Market Research Department said the economy has been predicted to grow 2.8% next year, and it will grow more than 3% if all government’s economic stimulus measures are carried out successfully.

Now, the broadcaster we can trust is telling us that the BoT governor says there is a strong likelihood the economy will enjoy sustained growth in 2016.

One wonders if the source of their predictions is in their balls, as their assessments are in stark contrast to that of my stockbroker (CIMB Thailand). I feel more inclined to believe my stockbroker as my own data (starting when the junta took power) shows that foreign investors continue to be nett sellers on the Stock Exchange of Thailand throughout 2015 (see plot). From this one might also infer that Prayut's acceptance-level peaked in December, 2014.

Given this, it will just about need a miracle for the local economy to show any real improvement into the foreseeable future (especially as the junta continues to foster a climate of uncertainty).

[Srikcir]

If agriculture volumes are down because of drought shouldn't that push prices up?

Only if Thailand is the sole world supplier of rice - which it is not.

[Srikcir]

"there was a strong likelihood that the economy will enjoy sustained growth."

But not enough sustained growth to keep even with the predicted growth rate for the total ASEAN nations in 2016. Thailand will continue to LAG behind and definitely not enjoy it.

[Thai at Heart]

If agriculture volumes are down because of drought shouldn't that push prices up?

Only if Thailand is the sole world supplier of rice - which it is not.

Ah, but Thailand is ordinarily the largest exporter, and global crops are also down.

So, basic understanding might suggest, that the exporters are going to pay 8k per tonne right now and hit a wonderful payday when prices start to strengthen in a few months.

[manhood]

They went to a fortune teller and the fortune teller found in a water melon some more seeds .....so that means 2016 will be a better year as 2015!!!!!!

Wow that's the way how they get these results for next year!

[ParadiseLost]

"there was a strong likelihood that the economy will enjoy sustained growth."

But not enough sustained growth to keep even with the predicted growth rate for the total ASEAN nations in 2016. Thailand will continue to LAG behind and definitely not enjoy it.

Or Thailand could prove to be the real anchor country and bring it all to a grinding halt...

Edited November 16, 2015 by ParadiseLost