Mr. Somchai Sujjapongse, Director-General of the Fiscal Policy Office, revealed that "Thai economy in October 2013 showed stable sign. Private consumption indicator in October 2013 showed slight improving sign from last month. This was reflected by the real VAT collection in October 2013, which expanded by 2.7 percent from last year, with an increase of 11.9 percent from previous month after seasonal adjustment (m-o-m SA). This was mainly due to an increase of real VAT collection on imported goods which grew by 9.1 percent per year. Private investment in October 2013 also showed improving sign from last month, especially construction investment as measured by the real estate tax collection in October 2013 which expanded by 14.9 percent per year with, with an increase of 9.6 percent from previous month after seasonal adjustment (m-o-m SA). This was in tandem with increasing demand in real estate. However, exports in October 2013 continued to show contraction by -0.7 percent from last year, but at slower pace. Exports to China grew continually and were at highest level in 9 months. Moreover, export products that showed expansion were electronics which expanded for 4 consecutive months. This was due to computer and parts and electrical appliances increased by 2.8 and 0.5 percent per year, respectively.
Supply-side indicators in October 2013 showed expansion especially for service sector as reflected by the number of inbound tourists which was recorded at 2.07 million persons in October 2013, or increased 14.7 percent from last year. This expansion was owing to inbound tourists from China, Russia and Malaysia, which showed a growth of 17.9, 30.8 and 14.6 percent from a year earlier respectively. Meanwhile, Agricultural Production Index (API) in October 2013 expanded by 5.3 percent from last year, with an expansion of 7.7 percent from previous month after seasonal adjustment (m-o-m SA). This was mainly due to increasing crops especially rice. However, Manufacturing Production Index (MPI) in October 2013 decreased by -4.0 percent from a year earlier. The manufacturing sectors which showed expansion were hard disk drive (HDD) industry, petroleum and electronics.
Economic stability remained robust. Headline inflation in October 2013 was at 1.5 percent from last year, while core inflation rate was at 0.7 percent. Unemployment rate in October 2013 stood at 0.6 percent of total labor force. Public debt to GDP ratio at the end of September 2013 stood at 45.5 percent, well below the 60 percent level under the Fiscal Sustainability Framework. Likewise, external economic stability remained robust and resilient to the risk from volatilities in the global economy."
Source: Fiscal Policy Office / www.fpo.go.th