ID :
407950
Fri, 05/27/2016 - 09:56
Auther :

Thailand's regional economies affected by risk factors

BANGKOK, May 27 (TNA) - Thailand's regional economies have been affected by drought, low prices of farm products and high household debts and should, thus, been recovering unhealthily in the first half of this year. Thanavath Phonvichai, Director of the Center for Economic and Business Forecasting, under Bangkok-based University of the Thai Chamber of Commerce (UTCC), told journalists on May 26 that widespread drought has reduced money in the Thai economy by more than 120 billion baht and another 200 billion baht has disappeared due to a slowdown in Thai exports, while people also have weak purchasing power and high household debts. In the first half of this year, Thanavath assessed, the Thai East should show the strongest economic recovery among all regions in the country, boosted by its transport, tourism and retail sectors. Thanavath pointed out that purchasing power is picking up in the Thai South, thanks to rising rubber prices, local tourism and government investment. According to the senior Thai economist, positive factors for the national economy this year include the government's economic stimulus measures and spending, as well as investment, tourism, exports, rubber prices and more political stability. For negative factors, the senior Thai economist acknowledged that they include drought, cheap farm products, household debts, strict lending control by financial institutes and global economic problems, Meanwhile, the center predicted that the Thai economy this year should grow by 3 per cent year-on-year, exports by 0.8 per cent and inflation should stand about 0.4 per cent. The center also said that the sales and revenues of local small and medium-sized enterprises (SMEs) fell in the first quarter of this year, partly resulting from new technologies. SMEs are concerned over disruptive technology, changing behaviors of consumers, rising production costs and fierce competition. However, the center predicted that the gross domestic product of Thailand's SMEs alone should rise by 3.9 per cent in 2016. (TNA)

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