Mr. Ekniti Nitithanprapas, Deputy Director-General of the Fiscal Policy Office, revealed that "Thai economy in July 2013 showed improving signs from previous month even though the economy still contracted. Export value in July 2013 decreased by -1.5 percent from last year, but expanded by 0.8 percent from previous month after seasonal adjustment (m-o-m SA). Export products that showed expansion were electronics and fuels, in tandem with economic recovery in the U.S. and Europe. For private consumption, as reflected by the real VAT collection in July 2013, which contracted by -1.9 percent from last year. Looking into detail, the real VAT collection on domestic consumption still increased by 5.5 from a year earlier. Likewise, imports of consumer goods in July 2013 showed an expansion of 9.0 percent per year. For private investment indicators of construction sector, as measured by the real estate tax collection in July 2013 expanded by 29.9 percent per year. However, for private investment indicators of machinery sector, as reflected by import value of capital goods in July 2013 decreased by -3.6 percent per year, with an expansion of 8.7 percent from previous month after seasonal adjustment (m-o-m SA)."
Ms. Kulaya Tantitemit, Executive Director of Macroeconomic Policy Bureau further elaborated that "Economic indicators on supply-side in manufacturing and agriculture still contracted. However, tourism sector showed strong expansion. Manufacturing Production Index (MPI) in July 2013 decreased by -4.5 percent from a year earlier, with a contraction of -0.4 percent from previous month after seasonal adjustment (m-o-m SA). Nonetheless, imports of raw materials which expanded by 12.5 percent per year showed improving sign in manufacturing sector. Agricultural Production Index (API) in July 2013 contracted by -2.7 percent from last year and by -7.4 from last month after seasonal adjustment (m-o-m SA). This was due to drop of crops especially rice from drought. Service sector indicators as reflected by tourism indicators in July 2013 still showed continued expansion. The number of inbound tourists increased by 22.5 percent from last year. This expansion was owing to inbound tourists from China, Malaysia and Singapore."
The spokesman of the Fiscal Policy Office concluded that "Thai economic indicators in July 2013 showed that for the first month of Thai economy in the 3 rd quarter of 2013 increased from last month. This indicates that Thai economy in this quarter should grow from previous quarter (q-o-q SA). Moreover, internal and external economic stabilities remained robust. Headline inflation and unemployment rate stood at 2.0 percent and 0.5 percent of total labor force respectively. Meanwhile, external economic stability remained robust and resilient to the risk from volatilities in the global economy, as indicated by the high-level of international reserves at the end of July 2013 at 172.2 billion USD. Fiscal policy should play important role in supporting Thai economy in the second half of this year."
Source: Fiscal Policy Office / www.fpo.go.th