29 March 2013
“Thai economy in February 2013 showed continued expansion with slight slowdown from previous month. Domestic spending especially in consumption of durable goods expanded well. Exports contracted due to high base from acceleration in exports after flood crisis last year. Supply-side sectors showed slowing signs in manufacturing and agriculture, however service sectors, reflected by number of tourists, showed strong expansion”
Mr. Somchai Sujjapongse, Director-General of the Fiscal Policy Office, revealed that “Economic indicators in February 2013 showed continued expansion with slight slowdown from previous month due to high base in February 2012 from acceleration in exports after flood crisis. Thai economy was supported by a continued expansion in domestic spending, especially in consumption of durable goods. Exports contracted for the first time in 6 months since August 2012. Supply-side sectors showed slowing signs in manufacturing and agriculture, however service sectors, reflected by number of tourists, showed strong expansion.”
Mr. Boonchai Charassangsomboon, Executive Director of Macroeconomic Policy Bureau, further elaborated that “Private consumption in February 2013 continued to grow at slower pace. This was reflected by the real VAT collection in February 2013, which grew by 3.2 percent from last year, decelerating from the previous month’s expansion of 16.9 percent per year. Durable goods consumption also showed steady growth, as reflected by passenger car sales in February 2013 that increased 92.1 percent per year. Private investment indicators of construction sector, as measured by real estate tax collection in February 2013 expanded 25.9 percent per year, decelerating from the previous month’s growth of 65.2 percent year-on-year. Meanwhile, domestic cement sales in February 2013 grew by 14.3 percent from a year earlier. Export value showed contraction of -5.8 percent from last year due to high base from acceleration in exports after flood crisis. On the supply side, Manufacturing Production Index (MPI) decreased -1.2 percent from a year earlier while Agricultural Production Index (API) in February 2013 slightly contracted by -0.2 percent from last year, decelerating from the previous month’s expansion of 0.7 percent. This was mainly due to a decline of crops especially rice and corn and partly due to the end of harvest season. Service sector indicators as reflected by tourism indicators were recorded at 2.3 million persons in February 2013 increased 25.6 percent from last year.”
The Director of Macroeconomic Policy Bureau of the Fiscal Policy Office concluded that “Thai economic indicators in February 2013 showed continued expansion at slower pace. However, Thai economy was affected by high base from Chinese New Year during January-February period. Therefore, Thailand’s economic condition needs to be further monitored in March 2013.”
Source: Fiscal Policy Office / www.fpo.go.th