“Thai economy in March and the 1st quarter of 2013 showed continued expansion but at slower pace from private domestic spending, exports and supply-side sectors especially manufacturing and agriculture. Meanwhile, fiscal sector still played important role to support continually Thai economy.”
Mr. Somchai Sujjapongse, Director-General of the Fiscal Policy Office, revealed that, “Economic indicators March and the 1st quarter of 2013 showed continued expansion but at slower pace from both domestic spending and exports. The real VAT collection grew by 6.9 percent year-on-year in the first quarter of 2013, which decreased from the fourth quarter’s growth of 18.0 percent year-on-year and declined -0.1 percent from previous quarter after seasonal adjustment (q-o-q SA). Export value expanded 4.3 percent per year with a decrease of -0.5 percent seasonally adjusted from previous quarter (q-o-q SA). The fiscal sector still played important role to support Thai economy. The budget disbursement in the first half of Fiscal Year 2013 showed an expansion of 8.1 percent per year. MPI in the first quarter expanded by 2.9 percent from a year earlier but decreased -2.8 percent from previous quarter after seasonal adjustment (q-o-q SA). Likewise, API increased 1.9 percent from last year but contracted by -4.0 after seasonal adjustment (q-o-q SA). Meanwhile, tourism sector showed the strongest expansion in Thai economy. This resulted in the first quarter of 2013 a 18.9 percent per year increase which increased 1.7 percent from previous quarter after seasonal adjustment (q-o-q SA). Moreover, economic stability remained robust and resilient to the risk from volatilities in the global economy.”
Ms. Kulaya Tantitemit, Senior Expert on Macroeconomic policy, acting Executive Director of Macroeconomic Policy Bureau further elaborated that “Thai economic indicators in the 1st quarter of 2013 showed strong growth from private consumption as reflected by imports of consumer goods in the first quarter which increased 5.1 percent year-on-year but decreased -4.0 percent from previous quarter after seasonal adjustment (q-o-q SA). The passenger car in the first quarter expanded by 101.3 percent from a year earlier, due to an increase in cars delivery which was supported by the First Car policy. Private investment also grew at a slower pace, especially in machinery and construction investment, it was revealed by import value of capital goods excluding aircraft, ships and trains in the first quarter which expanded by 2.6 percent from a year earlier but decreased -5.6 percent from previous quarter after seasonal adjustment (q-o-q SA). Likewise, the real estate tax collection expanded 32.5 percent per year but contracted by -5.4 percent from previous quarter after seasonal adjustment (q-o-q SA) due to accelerated pace in real estate tax collection from last quarter. Meanwhile, exports to major markets continued to show an expansion, such as Australia, China and ASEAN-9 which grew by 30.4, 7.3 and 5.9 percent, respectively, from last year.
Supply-side indicators in the first quarter of 2013 showed that the manufacturing sector which continued to expand in the first quarter of 2013 was vehicles, air-conditions, garments and jewelry industries. The agricultural sector’s performance as measured by Agricultural Production Index (API) in the first quarter of 2013 showed a slight increase however agricultural prices contracted by -4.0, resulted in a decrease of -5.1 percent from a year earlier in real farmer revenue. The service sector indicators as reflected by tourism indicators showed a continued expansion. The 3 countries who contributed the most to growth were China, Russia and Japan which grew by 93.5, 26.0 and 22.7 percent from last year. Regarding to economic stability, unemployment rate stayed low at 0.6 percent of total labor force. Inflation decreased slightly and international reserves at the end of March 2013 stood at 177.8 billion USD.”
The Director-General of the Fiscal Policy Office concluded that “Thai economic in Q1/2013 showed continued expansion at slower pace from last quarter. FPO will closely monitor on these situations. The fiscal sector will have to play an important role in supporting Thai economy.”
Source: Fiscal Policy Office / www.fpo.go.th