“Thai economy in April 2013 showed slowing signs with slowdown from supply-side in manufacturing and agriculture sectors but tourism showed expansion. However, domestic spending and exports expanded from previous month.”
Mr. Ekniti Nitithanprapas, Deputy Director-General of the Fiscal Policy Office, revealed that “Thai economy in April 2013 showed slowing signs with slowdown from supply-side in manufacturing and agriculture sectors, as reflected by Manufacturing Production Index (MPI) in April 2013 decreased -3.8 percent from a year earlier. Consistently, Thai Industrial Sentiment Index (TISI) in April 2013 stood at 92.9 points. This was mainly due to concern of producer on Thai baht appreciation which affected directly exports. Moreover, Agricultural Production Index (API) in April 2013 slightly contracted by -4.4 percent from last year. This was mainly due to a decline of crops especially second rice and tapioca because of the drought in the crop year 2556, resulting a contraction of -10.0 percent from a year earlier of real farmer income. Tourism indicators in April 2013 still showed positive sign. The number of inbound tourists was recorded at 2.0 million persons in April 2013, or increased 19.4 percent from last year. This expansion was owing to inbound tourists from China, Russia and Malaysia”
Deputy Director-General of the Fiscal Policy Office, further elaborated that “Although supply-side indicators showed slowdown, domestic spending and exports expanded from previous month. This was reflected by the real VAT collection in April 2013, which grew by 3.7 percent from last year as showed by domestic consumption’s growth at 10.0 percent. Meanwhile, imports of consumer goods in April 2013 showed an expansion of 12.9 percent per year. Likewise, durable goods consumption also showed a steady growth, as reflected by passenger car sales in April 2013 that increased 22.9 percent per year, decelerated from previous month’s expansion of 93.4 percent per year. However, Consumer Confidence Index in April 2013 stood at 73.9 points. This was the first contraction in seven months, due to concern about Thai baht appreciation. Private investment in April 2013 also showed a steady expansion, both in machinery and construction investment. This was reflected by import value of capital goods in March 2013 increasing at 2.3 percent per year, accelerating from previous month’s contraction of -5.7 percent per year. Commercial car sales in April 2013 showed a continued expansion of 26.5 percent per year. Meanwhile, cement sales in April 2013 grew by 17.7 percent from a year earlier which showed continued expansion in real estate in tandem with the real estate tax collection in April 2013 expanded 35.1 percent per year. Exports in April 2013 showed expansion for the 2nd month equivalent to an increase of 10.5 percent from last year from electronics, vehicles/equipment components, and polymers and plastic products. Exports to Hong Kong, Australia and the United States showed strong expansion.
The Director of Macroeconomic Policy Bureau of the Fiscal Policy Office concluded that “Thai economic indicators in April 2013 showed slowdown from manufacturing and agriculture sectors which could affect Thai economy in the 2nd quarter 2013. Therefore, Thailand’s economic condition needs to be further monitored by FPO.”
Source: Fiscal Policy Office / www.fpo.go.th