“Thai economy in August 2012 showed a continued expansion in domestic spending, both in private consumption and investment, while debt crisis in Eurozone negatively affected Thai export which was shown by a decrease of export to European markets resulting in total export value contracted by -6.9 percent. Meanwhile, economic stability remained robust and resilient to the risk from volatilities in the global economy”
Mr. Somchai Sujjapongse, Director-General of the Fiscal Policy Office, revealed that “Economic indicators in August 2012 suggested that uncertainty of European economy affected total Thai export value contracted by -6.9 percent from a year earlier. However, economic expansion is supported by domestic spending from both private consumption and investment. This was reflected by real VAT collection in August 2012 that expanded 9.5 percent per year. Consistently, passenger car sales in August 2012 showed an expansion of 71.1 percent from last year. Private investment also demonstrated a solid expansion, especially in volume of commercial car sales, which showed a strong expansion of 57.4 percent per year. Also, cement sales in August 2012 expanded 11.9 percent from a year earlier.”
Ms. Kulaya Tantitemit, Senior Expert on Macroeconomic policy further elaborated that “The public debt crisis in the Eurozone affected Thai export which was shown by a contraction of export value to European markets by -23.1 percent, and resulting the third consecutive month of total export contraction. In case of tourism sector, even the number of inbound tourists in August 2012 expanded 11.5 percent from previous year. However, the inbound tourists from European countries (except Russia) started to show contraction for the first time at-2.7 percent per year.”
The Director-General of the Fiscal Policy Office concluded that “According to Thai economic indicators in August 2012, it could be pointed out that a major driver for Thai economy this year has been domestic spending. Meanwhile, export sector started to show negative impacts from the Eurozone debt crisis. Given all of the above economic indicators and trend, the Fiscal Policy Office projects Thai economic growth would expand by 5.5 percent per year (within the range of 5.3-5.8 percent) in 2012 and would expand by 5.2 percent (within the range of 4.7-5.7) in 2013.”
Source: Fiscal Policy Office / www.fpo.go.th