Mr. Suwit Rojanavanich, Director-General of the Fiscal Policy Office, Spokesperson of the Ministry of Finance revealed economic report in September and the 3 rd quarter of 2017 that "The Thai economy in September 2017 showed improving signs from the previous month in both demand and supply sides as private investment expanded with accelerating pace and supply side expanded from agricultural products and the number of inbound foreign tourists. As a result, the widespread improvement supported the economic growth in the 3rd quarter of 2017, especially in export of goods and services. In addition, public expenditures expanded from the previous quarter and private expenditures expanded and supported the economy continually." The details were summarized as follows:
Economic indicators on private consumption expenditures expanded as shown by real VAT collection in September 2017 which expanded by 2.0 percent per year, and real VAT collection in the 3 rd quarter of 2017 which expanded by 5.9 percent per year. Likewise, passenger car sales in September 2017 continued to expand by 14.9 percent per year, the ninth consecutive month of expansion. Consequently, passenger car sales in the 3 rd quarter of 2017 expanded by 11.2 percent per year. Meanwhile, imports of consumers' goods in September 2017 continued to expand by 8.4 percent per year. In addition, Consumer Confidence Index (CCI) in September 2017 was at 62.5 points which was the second consecutive month of expansion as exports of goods and tourism sector expanded well. In addition, public investment the second half of the year supported the CCI in the 3 rd quarter of 2017 to grow at 62.4 points.
Economic indicators on private investment recovered at accelerating pace as imports of capital goods in September 2017 continued to expand by 11.4 percent per year and increased by 8.2 percent per year in the 3 rd quarter of 2017. Likewise, commercial car sales in September 2017 highly expanded by 26.6 percent per year due to 1-ton pickup truck sales which expanded by 23.8 percent per year, and as a result, the commercial car sales in the 3 rd quarter of 2017 expanded by 12.8 percent per year. Meanwhile, private investment in construction sector reflected by domestic cement sales in September 2017 expanded by 4.9 percent per year, and in the 3 rd quarter of 2017 expanded by 3.5 percent per year. In addition, Construction Materials Price Index (CMI) in September 2017 continued to expand by 4.2 percent per year due to prices in steel and steel products which increased by 19.2 percent per year and the CMI increased by 3.0 percent per year in the 3 rd quarter of 2017.
Export values expanded well for 7 months consecutively. Export values in September 2017 continued to expand by 12.2 percent per year, and export commodities showing expansion composed of jewelry and gems, gold, electronics, rubber products, and fuel. Trading partners showing expansion composed of ASEAN-9, China, CLMV, Hong Kong, Japan, Australia, and U.S.A. Meanwhile, import values in September 2017 expanded by 9.7 percent per year from raw materials and semi-finished materials, capital goods, gold, and consumers' goods. The trade balance showed a surplus of 3.4 billion USD in September 2017 and 61.9 billion USD in the 3 rd quarter of 2017.
Supply-side indicators were supported by Agricultural Product Index and the number of inbound foreign tourists which expanded continually. In September 2017, Agricultural Product Index (API) expanded for 8 months consecutively by 7.0 percent per year due to the expansion in main crop sector such as paddy, rubber, and cassava, livestock, and fishery. As a consequence, API in the 3 rd quarter of 2017 expanded by 11.9 percent per year. Meanwhile, the number of inbound foreign tourists in September 2017 was recorded at 2.56 million persons expanding by 5.7 percent per year mainly due to the expansion of tourists from China, Korea, Cambodia, and India and in the 3 rd quarter of 2017 the number of inbound foreign tourists was recorded at 8.78 million persons increasing by 6.4 percent per year. In addition, Thai Industries Sentiment Index (TISI) in September 2017 stood at 86.7 points increasing for 2 months consecutively due to positive factors of the confidence in SMEs which was supported by sale promotion to stimulate domestic spending. Consequently, in the 3 rd quarter of 2017 the TISI was at 85.2 points.
Internal economic stabilities remained favourable and external economic stability remained robust.Headline and core inflation in September 2017 were at 0.9 and 0.5 percent per year, respectively. Unemployment rate in September 2017 was at 1.2 percent of total labor force. Meanwhile, public debt to GDP at the end of August 2017 stood at 41.9 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 September 2017 were high at 199.3 billion USD, approximately 3.4 times of shortterm external debt.
Number 45/2017
30 October 2017
Source: Fiscal Policy Office / www.fpo.go.th