Number 18/2017
29 May 2017
Mr.Krisada Chinavicharana, Director-General of the Fiscal Policy Office, Spokesperson of the Ministry of Finance revealed that "The Thai economy in April 2017 continued to expand as export sector showed positive expansion and private consumption expanded well partly due to a highly increase in real farmers' income. Meanwhile, the number of inbound foreign tourists expanded well." The details were summarized as follows:
Economic indicators on private consumption showed improving signs as new motorcycle registrations in April 2017 expanded by 16.3 percent per year and expanded by 2.2 percent per month after seasonal adjustment due to increasing registration in Bangkok and other regions caused by farmers' income in April 2017 which increased continually by 30.6 percent per year. Meanwhile, passenger car sales in April 2017 continued to expand for 4 months consecutively at 23.2 percent per year. Meanwhile, Consumer Confidence Index (CCI) in April 2017 stood at 65.4 points increasing for 5 months consecutively and highest in 24 months partially due to improvement in export and tourism sector along with increasing prices in agricultural products resulting in an increase in people's spending in many provinces.
Private investment showed mixed signs as investment in equipment and machinery sector reflected by commercial car sales in April 2017 which continued to expand for 4 months consecutively at 10.1 percent per year and increased by 0.9 percent per month after seasonal adjustment due to a well expansion of 1-ton pickup truck. In addition, imports of capital goods in April 2017 continued to expand at 8.5 percent per year. Meanwhile, private investment in construction sector as reflected by domestic cement sales in April 2017 were slow down.
Export values continued to expand well as export values in April 2017 were amounted at 16.9 billion USD continually expanding by 8.5 percent per year. Export commodities showing expansion composed of rubber products, chemicals, fuel, electronics, gold, textile, and electrical appliance. Export markets showing expansion composed of China, Singapore, Vietnam, CLMV, and South Korea. Meanwhile, import values in April 2017 were at 16.8 billion USD continually expanding by 13.4 percent per year from main import goods such as raw materials and semi-finished materials, fuel, capital goods, and gold. As import values slightly recovered, trade balance in April 2017 showed a gradual surplus of 0.06 billion USD.
Supply-side indicators were supported by agricultural sector and the number of inbound foreign tourists as Agricultural Product Index in April 2017 continued to expand by 27.4 percent per year and expanded by 3.3 percent per month after seasonal adjustment due to an expansion in main crop production, livestock, and fishery. Likewise, Agricultural Price Index continued to expand by 2.8 percent per year from increasing prices in main crop and fishery. For the service sector,the number of inbound foreign tourists in April 2017 continued to expand by 7.0 percent per year and expanded by 3.3 percent per month after seasonal adjustment as tourists from Hong Kong, Russia, Malaysia, and South Korea expanded well.
Internal economic stabilities remained favourable and external economic stability remained robust.Headline inflation and core inflation in April 2017 were at 0.4 and 0.5 percent per year, respectively. Unemployment rate was at 1.2 percent of total labour force. Meanwhile, public debt to GDP at the end of March 2017 stood at 42.3 percent to GDP, lower than the Fiscal Sustainability Framework of 60 percent to GDP. External economic stability remained robust reflecting the resilient ability to risk from the volatilities in global economy as the international reserves at the end of April 2017 were high at 184.5 billion USD, approximately 3.4 times of short-term external debt.
Source: Fiscal Policy Office / www.fpo.go.th