BoT says Thailand’s economy recovers in Q3

BANGKOK, Oct 30 (TNA) -- Thailand’s economy improved slightly in the third quarter from the second quarter of 2016 due to better domestic consumption and investment but external factors continue to pose higher risks, said Roong Mallikamas, senior director of Bank of Thailand’s Macroeconomic and Monetary Policy Department. Ms Roong said the improvement in Thailand’s gross domestic product (GDP) was visible toward the end of the third quarter in the recovery of domestic consumption and investment. Public confidence improved marginally while income of agriculturists fell slightly and government spending was still efficient. During the fiscal 2015 which ended on September 30 this year, public spending grew 4.9 per cent, up from only 0.9 per cent growth in fiscal 2014, she said, adding that uncertainties from overseas persisted, especially on signs that the US Federal Reserve might raise its policy interest rates which affected capital inflows and outflows, the value of Thai baht, a slowdown in China and ASEAN’s economies. Ms Roong said consumption of durable goods in Thailand last month continued declining as the public was still cautious in spending while income of agriculturists was still low as it fell 10.7 per cent due to severe drought in Thailand and falling prices of agricultural products. However, the drought is not severe and will not impact Thailand’s economy in 2016 which is projected to grow 3.7 per cent, she said. Imports in September declined sharply by 21.3 per cent, mostly on capital goods, she said. Business confidence remained at the low level in the third quarter as it stood at 47, down from 48.2 in the second quarter, displaying that economy recovery in the country was still too slow. Thailand’s exports last month were still sluggish due to a slowdown of economies by China and ASEAN members, Ms Roong said. The country’s exports fell for the ninth consecutive month by 6.7 per cent. (TNA)