Issue 41/2016
28 November 2016
"The Thai economy in October 2016 expanded from private consumption and government's disbursement and agricultural products continued to expand. In addition, Thai economic stabilities remained robust reflecting the resilient ability to risk from the internal and external volatilities."Mr. Pornchai Thiraveja, Deputy Director General of the Fiscal Policy Office, Spokesperson of the Fiscal Policy Office revealed that "The Thai economy in October 2016 expanded from private consumption and government's disbursement and agricultural products continued to expand. In addition, Thai economic stabilities remained robust reflecting the resilient ability to risk from the internal and external volatilities." The details were summarized as follows:
Economic indicators on expenditure side remained favorable. Private consumption expanded as reflected from new motorcycle registrations which expanded by 3.1 percent per year, the 7 th consecutive month of expansion, and expanded in Bangkok Metropolitan Region and other regions as real farmers' income improved by 3.8 percent per year. In addition, real VAT collection expanded by 0.3 percent per year as real VAT collection from domestic consumption base expanded by 1.1 percent per year. Meanwhile, government expenditures particularly current and capital expenditures expanded well reflected from the total budget disbursement in October 2016 was amounted at 435.4 billion baht expanding by 16.3 percent per year as current and capital expenditures expanded by 17.5 and 17.0 percent per year, respectively.
Economic indicators on production side showed good signs as reflected by Agricultural Production Index (API) in October 2016 expanded by 5.9 percent per year and expanded by 6.2 percent per month after seasonal adjustment due to an expansion of rubber, corn, oil palm, and fruits. Meanwhile, Agricultural Price Index slightly decreased by -1.2 percent per year as prices from main agricultural products such as paddy particularly jasmine rice decreased continually due to harvest season and prices in cassava and corn for animal feed declined as well. However, prices of rubber and oil palm expanded well. In addition, Thai Industries Sentiment Index (TISI) improved for 2 months consecutively by increasing to 86.5 points due to an increasing in orders from both domestic and foreign consumers for New Year preparation.
Economic stabilities remained robust.In October 2016 headline inflation and core inflation were at a low level of 0.3 and 0.7 percent per year, respectively. Meanwhile, unemployment rate was also at a low level of 1.2 percent of total labor force or 450,000 persons. In addition, Public debt to GDP at the end of September 2016 stood at 42.8 percent of GDP, lower than the Fiscal Sustainability Framework of 60 percent of GDP. The international reserves at the end of October 2016 were high at 180.3 billion USD, or approximately 3.2 times of shortterm external debt reflecting the resilient ability to risk from the volatilities in global economy.
Source: Fiscal Policy Office / www.fpo.go.th