Reuters: Thai Q2 GDP growth higher than forecast, boosts up baht

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Reuters: Thai Q2 GDP growth higher than forecast, boosts up baht

 

  

BANGKOK, 24 August 2016 (NNT) - Thailand's economy grew higher than expected in 2016's second quarter, thanks to solid government expenditure and tourist industry, Reuters reported. 

However, the National Economic and Social Development Board (NESDB) predicted that Thai exports would drop lower than earlier forecast. 

Tourist industry accounted for 10 per cent of Gross Domestic Product though revenues might probably drop throughout the rest of the year after a wave of bombings in southern resort towns recently. 

Being Southeast Asia's second largest economy, Thailand's economic growth accounted for a 0.8 per cent increase from a previous quarter, according to the NESDB. 

The pace was slower than the revised 1.0 per cent in the first quarter but above the 0.5 per cent forecast in a Reuters poll. The second quarter's growth was reported at 3.5 per cent, compared to the first quarter's 3.2 per cent and that marked the highest for the corresponding quarter of previous years. 

The agency said the latest blasts in southern Thailand would not have a severe impact on the country's tourism. 

Meanwhile, the baht hit its strongest level in over a year following the growth report. It gained as much as 0.2 per cent to 34.685 per US dollar, its strongest since July 22, 2015. 

Thailand's trade-dependent economy struggled to expand and lagged regional peers since the army seized power in May, 2014 to end prolonged political turmoils. 

Domestic demands have been sluggish and exports - worth about two-thirds of GDP - have decreased over the past three years due to lowered global demands and China's economic slowdown. Increased household debt, meanwhile, has restrained domestic consumption. 

The NESDB expected the Thai economy to grow 3.0-3.5 per cent throughout this year, unchanged from its previous forecast. The exports were predicted to shrink 1.9 per cent this year, compared to 1.7 per cent earlier speculated. 

The Reuters poll marked a 3.0 per cent growth in 2016, up from 2.8 per cent last year. In a bid to spur activity, the ruling Thai junta has introduced economic stimulus measures and bolstered investment although big infrastructure projects have been started at a slow pace. 

Government investments rose 10.4 per cent while private investments only increased 0.1 per cent between April and June. Tourist arrivals in the second quarter rose eight per cent from a year earlier. 

Benjamin Shatil, Asean economist at JPMorgan, said that looking beyond tourism and government spending, there's still "a fragile base for activity in the Thai economy.This points to the possibility of alleviated monetary measures from the central bank if activity softens more noticeably into the second half of the year."

 

-- nnt 2016-08-24

[Eric Loh]

Without attracting foreign direct investments, the future looks dim. The infrastructure spending will come to nothing and under-used if not commensurate with attracting more business investments.   

[kataglenn]

Who do these figures ?? Same ones who do the Tourism numbers ??

[elgordo38]

2 hours ago, kataglenn said:

Who do these figures ?? Same ones who do the Tourism numbers ??

Quote  The agency said the latest blasts in southern Thailand would not have a severe impact on the country's tourism. unquote. If you believe this you will also believe any figures they produce. I have marked 3% on my December section of the calendar. 

[Baerboxer]

4 hours ago, Eric Loh said:

Without attracting foreign direct investments, the future looks dim. The infrastructure spending will come to nothing and under-used if not commensurate with attracting more business investments.   

 

Do you think allowing a government openly controlled by a non elected criminal fugitive to borrow 2.2 trillion baht, which they wanted to spend "off budget, way from parliamentary scrutiny" supposedly to "speed" up their projects would have delivered a brighter future then?

 

Well, for one family, their extended relations, cronies and lackeys possibly.

[Baerboxer]

28 minutes ago, elgordo38 said:

Quote  The agency said the latest blasts in southern Thailand would not have a severe impact on the country's tourism. unquote. If you believe this you will also believe any figures they produce. I have marked 3% on my December section of the calendar. 

 

How long have bombs and killings been going on in the South and what has been the impact on tourist numbers?

 

[Eric Loh]

54 minutes ago, Baerboxer said:

 

Do you think allowing a government openly controlled by a non elected criminal fugitive to borrow 2.2 trillion baht, which they wanted to spend "off budget, way from parliamentary scrutiny" supposedly to "speed" up their projects would have delivered a brighter future then?

 

Well, for one family, their extended relations, cronies and lackeys possibly.

 

Hyperbole much BB. Must be some kind of day dream believer to come out with such fantasy. Whatever the scenario, an elected government spending is much more transparent and open to the public than an opaque non elected military government and the draconian laws against open scrutiny and criticism. 

 

Certainly much brighter future for all when considering that FDI under junta government plunged 78% and compare that to previous elected government faced with the post flood disasters still attracted 76% more FDI. 

 

[Roota]

8 hours ago, kataglenn said:

Who do these figures ?? 

In this case a company called Reuters. Most of us in the business regard them as fairly reliable.

 

I know it pains some of you, but tourism is doing pretty well too. Hint: if you want to crap on the Thai economy (and there are currently some good reasons to do so) then look beyond the tourism industry. It's a fairly small part of the GDP -- about 10% -- but so far it's been enough to keep the economy growing slightly. 

[Wilsonandson]

Reuters whatever they print is the gospel.
"I work for reuters news agency"
"I work for fox news"
Student to journalist we'll have anyone news agency.

[berybert]

3 hours ago, Roota said:

In this case a company called Reuters. Most of us in the business regard them as fairly reliable.

 

I know it pains some of you, but tourism is doing pretty well too. Hint: if you want to crap on the Thai economy (and there are currently some good reasons to do so) then look beyond the tourism industry. It's a fairly small part of the GDP -- about 10% -- but so far it's been enough to keep the economy growing slightly. 

10% is a small part of Thailand GDP ?

Maybe add another 5%/10% expat spending.

And as many would have you believe foreigners contribute next to nothing to the Thai economy.

So you can all go home, you wont be missed.

 

 

[Baerboxer]

21 hours ago, Eric Loh said:

 

Hyperbole much BB. Must be some kind of day dream believer to come out with such fantasy. Whatever the scenario, an elected government spending is much more transparent and open to the public than an opaque non elected military government and the draconian laws against open scrutiny and criticism. 

 

Certainly much brighter future for all when considering that FDI under junta government plunged 78% and compare that to previous elected government faced with the post flood disasters still attracted 76% more FDI. 

 

 

So PTP were transparent in the rice scheme, open to the public and were only kidding when they said they wanted to keep the 2.2 trillion spending off budget. 

 

I remember their great actress, Yingluck, declaring "just trust us".

 

Naive much Eric, and deny the reality of PTP and all Thaksin governments if you so wish. 

[kataglenn]

On 8/24/2016 at 8:17 PM, Roota said:

In this case a company called Reuters. Most of us in the business regard them as fairly reliable.

 

I know it pains some of you, but tourism is doing pretty well too. Hint: if you want to crap on the Thai economy (and there are currently some good reasons to do so) then look beyond the tourism industry. It's a fairly small part of the GDP -- about 10% -- but so far it's been enough to keep the economy growing slightly. 

Tourism is doing well ??? so the figures say