Number 39/2017
28 September 2017
Mr. Krisada Chinavicharana, Director-General of the Fiscal Policy Office, Spokesperson of the Ministry of Finance revealed that "The Thai economy in August 2017 was mainly driven by export sector which highly expanded by 13.2 percent per year, the highest in 55 months. Meanwhile, private expenditures expanded well from consumption and investment particularly investment in equipment and machinery which strongly supported economic growth. Likewise, the supply-side economy expanded well particularly Agricultural Production Index and the number of inbound foreign tourists."The details were summarized as follows:
Economic indicators on private consumption expenditures expanded as shown by real VAT collection in August 2017 which expanded by 14.7 percent per year, the highest in 54 months (since January in 2013). Passenger car sales in August 2017 expanded by 8.5 percent per year, the eighth consecutive month of expansion. Likewise, imports of consumers' goods in August 2017 continued to expand by 6.0 percent per year, and 3.9 percent per month after seasonal adjustment. In addition, Consumer Confidence Index (CCI) in August 2017 stood at 62.4 points, the first increase in 4 months as consumers improved their expectation on Thai economy due to the expansion in exports, tourism sector, and public investment projects which would stimulate the economy for the rest of the year.
Economic indicators on private investment expanded particularly in equipment and machinery sector indicated by imports of capital goods in August 2017 which continued to expand by 5.5 percent per year and commercial car sales in August 2017 expanded by 5.8 percent per year, or 2.8 percent per month after seasonal adjustment due to an expansion in 1-ton pickup truck sales. Meanwhile, private investment in construction sector reflected by domestic cement sales expanded by 6.1 percent per year, the highest in 17 months (since March 2017) and expanded by 4.2 percent per month after seasonal adjustment. In addition, Construction Materials Price Index (CMI) in August continued to expand by 3.2 percent per year.
Export values expanded well for 6 months consecutively. Export values in August 2017 continued to expand by 13.2 percent per year, the highest in 55 months, and expanded by 7.3 percent per month after seasonal adjustment. Export commodities showing expansion composed of gold, jewelry and gems, agricultural products, electronics, and rubber products. Export markets showing expansion composed of ASEAN-9, China, Japan, and U.S.A. Meanwhile, import values in August 2017 continually expanded by 14.9 percent per year from raw materials and semi-finished materials, fuel, gold, capital goods, and consumers' goods. The trade balance in August 2017 showed a surplus of 2.1 billion USD.
Supply-side indicators were supported by Agricultural Product Index and the number of inbound foreign tourists which expanded well. In August 2017, Agricultural Product Index (API) continually expanded by 17.1 percent per year due to the expansion in main crop sector such as corn, and fruits such as longan, rambutan, and mangosteen which was a result of harvest season. In addition, paddy expanded well due to carry-over cultivating and harvest season. Meanwhile, tourism sector indicating by the number of inbound foreign tourists in August 2017 were recorded at 3.13 million persons continually expanding by 8.7 percent per year and 1.5 percent per month after seasonal adjustment mainly due to the expansion of tourists from China, Malaysia, Korea, and India. In addition, Thai Industries Sentiment Index (TISI) in August 2017 stood at 85.0 points increasing from 83.9 points in previous month and this was the first increase in 5 months due to positive factors of the confidence in SMEs, and the expansion in purchasing orders, sales, and productions.
Internal economic stabilities remained favourable and external economic stability remained robust.Headline and core inflation in August 2017 were at 0.3 and 0.5 percent per year, respectively. Unemployment rate in August 2017 was at 1.1 percent of total labor force. Meanwhile, public debt to GDP at the end of July 2017 stood at 41.8 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 August 2017 were high at 196.9 billion USD, approximately 3.5 times of short-term external debt.
Source: Fiscal Policy Office / www.fpo.go.th