"Thai economy in December grew at an accelerated rate due to not only a low base from last year’s flood crisis, but also manufacturing sector showed a continued expansion from domestic spending and export, as well as tourism sector.”
Mr. Ekniti Nitithanprapas , Deputy Director-General of the Fiscal Policy Office, revealed that “Economic indicators in the 4th quarter of 2012 grew at an accelerated rate due to last year’s base, which was supported by the growth of domestic manufacturing and a strong domestic spending meanwhile Thai export showed an improving sign for the fourth consecutive month. Furthermore, service sector as reflected by tourism showed a strong expansion.”
Mr. Boonchai Charassangsomboon, Executive Director of Macroeconomic Policy Bureau, further elaborated that “Thai economic indicators in the 4th quarter of 2012 showed a strong growth from a year earlier and from previous quarter after seasonal adjustment (q-o-q SA). In terms of private consumption, this was reflected by imports of consumer goods which increased 8.8 percent year-on-year while passenger car and motorcycle sales also showed a strong expansion. For private investment, it was revealed by import value of capital goods which expanded by 43.1 percent from a year earlier. The real estate tax collection expanded 45.2 percent per year meanwhile exports in December 2012 continued to expand in the fourth consecutive month, an increase of 18.5 percent year on year and 0.7 from previous quarter. Furthermore, Manufacturing Production Index (MPI) in the fourth quarter of 2012 increased 44.0 percent from a year earlier and 4.5 percent from previous quarter. Tourism indicators still showed a continued expansion. The number of inbound tourists in the 4th quarter increased 39.3 percent from previous quarter, accelerating from last quarter’s expansion of 8.6 percent per year. Agricultural Production Index (API) in the fourth quarter of 2012 showed a steady expansion of 2.8 percent from last year, decelerating from last quarter. Looking into details, rubber product showed a strong expansion meanwhile paddy and tapioca showed a slowdown due to an early harvesting in last quarter. The government spending stimulates economic activities. The budget disbursement in the fourth quarter recorded an increment of 60.5 percent from a year earlier. Economic stability remained robust with unemployment rate of 0.4 percent of total labor force, inflation increased slightly and international reserves at the end of 2012 stood at 181.6 billion USD.”
The Director-General of the Fiscal Policy Office concluded that “Thai economic in Q4/2012 was significantly driven by domestic spending. Manufacturing and export also showed an expansion. Given all of the above economic indicators and trend, the Fiscal Policy Office reiterates that Thai economic growth would expand by 5.7 percent per year in 2012 as we expected.”
Source: Fiscal Policy Office / www.fpo.go.th