BOT: High consumption growth in Q2 reflects economic recovery

[webfact]

BOT: High consumption growth in Q2 reflects economic recovery

  

BANGKOK, 18 August 2016 (NNT) – The Bank of Thailand (BOT) has indicated that the Thai economy has fully recovered, judging from the significant increases in GDP and private consumption in the second quarter. 

Mr Jaturong Jantarangs, the BOT’s Assistant Governor for the Monetary Policy Group, noted that national GDP expanded 3.5 percent year-on-year during the second quarter. Moreover, according to a report by the National Economic and Social Development Board, private consumption also posted a rise of 3.8 percent. 

He said both figures are indicative of full economic recovery although public investment, which has been a major driver of the economy, is slowing down slightly while private investment remains sluggish. Compared with domestic factors, the Assistant Governor pointed out that the central bank is indeed giving more weight to the mounting risks from uncertainties in the global economy. 

As for the appreciation of the Thai baht over the past 2-3 days, Mr Jaturong said it was due to the positive economic indicators of the second quarter as well as the success of the August 7 constitutional referendum, lending a boost to capital inflow. 

 

-- nnt 2016-08-18

[maoro2013]

Yeah Yeah.

 

What will be the news tomorrow.

 

The economy has 'Fully Recovered' from what? I don't believe we were told that the economy had been suffering.

[Srikcir]

6 hours ago, webfact said:

although public investment, which has been a major driver of the economy, is slowing down slightly while private investment remains sluggish.

So it is largely government investment keeping the economy growing. Will Prayut be able to continue government investment in mega-infrastructure projects at the same levels in the 3rd and 4th quarters? The 2016Q4 will be funded by the Fiscal Year 2017 budget (Oct. 1, 2016-Sept. 31, 2017) which carries a substantial debt not found in the FY 2016 budget. As such the government may not be able to be as freewheeling with supporting more mega-infrastruture projects as it has been with the FY 2016 budget.

[retarius]

Cue a fall in consumption next quarter.

[robblok]

However bad it might be.. the BOT still has to intervene when the Baht get too high (read BKK post). So the economy might be bad but the exchange-rate wont suffer. I know these things are not directly connected but I just mention it because otherwise people will start about the falling baht and that is just not happening because of the trade balance.

 

I agree that the economy is not that good at this time.

[elgordo38]

He is no different than the US Fed who has run out of ammunition except for market speak every couple days to keep the stock market high till after the election and to keep gold from interfering with their fiat currency pyramid scheme. They are being disingenuous in both cases. In both cases these statements can be misleading to investors who "hang" on their every word. Investing today is like Las Vegas you lay down your money and takes your chances. 

[dageurreotype]

1 hour ago, robblok said:

However bad it might be.. the BOT still has to intervene when the Baht get too high (read BKK post). So the economy might be bad but the exchange-rate wont suffer. I know these things are not directly connected but I just mention it because otherwise people will start about the falling baht and that is just not happening because of the trade balance.

 

I agree that the economy is not that good at this time.

 

And in that same paper is an article regarding Japan's Yen being too strong and it's exports crashing. Thailand take note. Of course they won't ..

[Hawk]

"He said both figures are indicative of full economic recovery"   

 

 

So why is everyone else saying the opposite?  Of course they are all lying!  Thais only tell small lies.

[Hawk]

"As for the appreciation of the Thai baht over the past 2-3 days, Mr Jaturong said it was due to the positive economic indicators of the second quarter as well as the success of the August 7 constitutional referendum, lending a boost to capital inflow."

 

 

No, just pure gambling.  Gamblers throw money into the market causing a rise in stock prices then those same gamblers cash in before the ordinary punters realize its a game.  The so called boost in capital inflow is very limited in time, like hundreds of people gambling on horses in the 2.30 at Kempton Park. Quick in and out with a sizable profit. 

 

The Thai economy is in freefall while the baht is headed for outer space.

[robblok]

17 minutes ago, dageurreotype said:

 

And in that same paper is an article regarding Japan's Yen being too strong and it's exports crashing. Thailand take note. Of course they won't ..

The fact that the BOT intervenes when the Baht gets too high shows they do take note of it. 

[metisdead]

A post in violation of fair use policy has been removed. 

[Redline]

Better look at the reflection again today, maybe it's clearer