Thai economy begins to signal recovery

By k on July 30, 2009

BANGKOK, July 30 (TNA) – The Thai economy in June, and the rest of the second quarter of this year, began to show signs of recovery, with the production sector shrinking at a slower pace and purchase orders from overseas increasing, according to the Fiscal Policy Office (FPO).

FPO Director-General Somchai Sajjapong said private consumption and exports showed signs of improvement from earlier contraction, but private investment continued shrinking.

The economy had stabilised with the unemployment rate declining and employment in the production sector picking up. Simultaneously, the country’s international reserves remain at a healthy level.

Given these positive factors, the FPO believes the economy had already bottomed out in the first quarter of this year and contracted more slowly in the second quarter.

It is expected the economy will further recover in the third quarter and resume positive growth in the fourth quarter.

He said FPO will revise the country’s gross domestic product (GDP) for 2009 in the next two months. It had earlier forecast GDP would contract 3 per cent this year.

Now, various economic figures stay volatile, but there are positive aspects to the economic growth. As the economy now signal recovery, he said, FPO sees a need for private companies to prepare for investment expansion.

They should not wait until the economy recovers because it might be too late.

He advised the government to accelerate spending to ensure it meets its target, and forge ahead with implementing Thailand’s investment projects under the Thai Khem Kaeng (Stronger Thai) slogan to lead the way for private companies to decide to increase investment because the investment in the second quarter remained worrying. (TNA)

BoT confident Thai economy will recover well in Q4 BANGKOK, 1 December 2009 (NNT) – The Bank of Thailand...
Bangkok Bank: Thai economy starts U-shape recovery BANGKOK, 3 September 2009 (NNT) – Bangkok Bank has estimated...
Economy to turn positive in Q4 BANGKOK, 22 November 2009 (NNT) – The country’s economy in...

Related posts brought to you by Yet Another Related Posts Plugin.

Readers Comments

Business News »

Loan clients urged to be well-prepared for higher finance costs

July 16, 2010

BANGKOK, July 16 – Loan customers, particularly small- and medium-size enterprises (SMEs), must have well-prepared business plans to cope with higher financial costs in the face of an upward interest trend, according to the Kasikorn Research Center (KRC), a leading Thai financial think tank. Kasikorn said that major domestic commercial banks had begun raising the [...]

Bank And Finance »

Commercial banks announce hikes in interest rates on fixed deposits

July 16, 2010

BANGKOK, 16 July 2010 (NNT) —Interest rates on fixed deposits and lending rates have been hiked by financial institutions following the hike in the policy rate by the Central Bank. Krungthai Bank has announced its fixed deposit interest rate hike of 0.25-0.35%, while key lending rates would be increased by 0.125-0.15%, effective today. Siam Commercial [...]

General News »

Summary of the 9th APEC Energy Meeting

July 12, 2010

Thai delegates led by Minister of National Resources and Environment, Suwit Khunkitti, along with international counterparts from 20 countries attended the 9th Asia-Pacific Economic Cooperation (APEC) Energy Ministerial Meeting in Fukui, Japan on 19 June 2010. During the summit, a speech on the “Low Carbon Paths to Energy Security: Cooperative Energy Solutions for a Sustainable [...]

Economy »

4 Govt agencies cooperate to promote Thai investment abroad

July 12, 2010

BANGKOK, 12 July 2010 (NNT) – The Office of Thailand Trade Representative (TTR) joins force with three financial institutions to promote Thai investments abroad, with operators in various business groups showing keen interest in the project. TTR along with SME Bank, EXIM Bank and the Government Pension Fund (GPF) announced their cooperation in credit support [...]

Energy »

Moody´s chops down PTT´s credit

June 29, 2010

BANGKOK, 29 June 2010 (NNT) – An international credit rating firm, Moody’s Investors Service, has lowered the creditworthiness of Thai petroleum giant PTT Plc from A2 to A3 with a negative outlook. Moody’s Investors Service has changed the local currency issuer rating for PTT Plc from A2 stable to A3 negative while the foreign currency [...]

Politics »

One month needed for Interpol consideration over Thaksin´s case

July 16, 2010

BANGKOK, 16 July 2010 (NNT) – A nod from the Paris-based international police intelligence-sharing association, Interpol, over case of self-exiled ex Prime Minister Thaksin Shinawatra should be known within one month. Police Maj-General Terdsak Rujirawong, Commander of the Royal Thai Police Foreign Affairs Division, said on Friday that an arrest warrant on terrorism charge issued [...]