“Thai economy in November 2012 showed a continued expansion in domestic spending, both in private consumption and investment, while export and manufacturing sectors showed an improving sign from previous month”
Mr. Somchai Sujjapongse, Director-General of the Fiscal Policy Office, revealed that “Economic indicators in November 2012 suggested a continued expansion from a year earlier particularly in domestic spending, both in private consumption and investment, partly due to low base from flooding crisis. However, looking into details by month on month variation after seasonally adjusted (m-o-m SA), economic indicators suggested improving signs, both in private consumption and investment, while export and manufacturing sectors showed an improving sign from previous month. This was partly supported by export partners’ growth such as China, ASEAN-9 and Australia. Also, the manufacturing sector showed a positive sign from continued expansions in private consumption and investment, especially in automobile industry which continues to grow at an accelerated rate with a strong demand for a manufacturing products in global market”
Mr. Boonchai Charassangsomboon, Executive Director of Macroeconomic Policy Bureau, further elaborated that “There was a continued expansion in domestic spending, both in private consumption and investment. This was reflected by the real VAT collection in November 2012, which grew by 0.6 percent from last month (m-o-m SA). For private investment indicators of construction sector, as measured by real estate tax collection in November 2012 expanded 8.9 percent from the previous month (m-o-m SA). Export value in November 2012 showed an expansion of 3.1 percent from last month (m-o-m SA). The main partnerships that showed a strong expansion are China 2.4 percent from last month (m-o-m SA), ASEAN-9 2.6 percent and Australia 11.2 percent respectively. Manufacturing Production Index (MPI) in November 2012 increased 8.0 percent from a month earlier (m-om SA). Moreover, automobile, electronics and electrical appliances such as air-condition, refrigerator and fan continued to show a strong expansion.”
The Director-General of the Fiscal Policy Office concluded that “According to Thai economic indicators in November 2012, it is expected that Thai economy in 2012 would show a continued expansion supported mainly by domestic spending. Meanwhile, exports and manufacturing sectors showed an improving sign. Given all of the above economic indicators and trend, the Fiscal Policy Office projects Thai economic growth would expand by 5.7 percent per year (within the range of 5.6-5.8 percent) in 2012 and would expand by 5.0 percent (within the range of 4.5-5.5) in 2013. However, there still are risk factors such as fiscal cliff in U.S. economy, public debt crisis in Eurozone and slowdowns in China and India”
Source: Fiscal Policy Office / www.fpo.go.th