No. 48/2011
The economy in September 2011 expanded at a slower pace following the weakening global economy. In addition, flooding in several areas began to affect activities in certain sectors.
Export decelerated in line with production in the manufacturing sector, particularly exports of electronics to Europe and Japan. Meanwhile, exports to ASEAN and China remained robust.
Consumption and the tourism sector began to soften partly due to the impact from flooding. Meanwhile, investment continued to expand.
The government generated higher-than-expected revenue in tandem with economic expansion. In addition, a higher disbursement rate also supported the economic activities. Headline inflation moderated following declining oil prices. However, core inflation continued to accelerate from the ongoing pass-through of prepared food and condiments prices. Meanwhile, inflation expectations remained at a high level.
A slowdown in the global economy, coupled with flooding, are likely to affect the production sector going forward. This was reflected by declining confidence of consumers and businesses, with regard to rising concerns of economic condition as well as domestic and external demand.
Contact: Macroeconomic Team
Tel: +66 (0)-2283-5647, +66 (0)-2283-5648
e-mail: [email protected]
Source: Bank of Thailand