THAI ECONOMY IS SHOWING SIGNS OF RECOVERY
The Thai economy began to show signs of recovery in the second quarter of this year, with the production sector shrinking at a slower pace and increasing overseas purchase order, according to the Fiscal Policy Office (FPO).
FPO-Director-General Somchai Sajjapong said that private consumption and exports showed signs of improvement from earlier contraction, but private investment continued shrinking.
The economy had stabilised with the unemployment rate declining and employment in the production sector picking up. In line with that, the country’s international reserves remain at a healthy level.
Given these positive factors, the FPO believes that the Thai economy had already hit rock bottom in the first quarter of this year and contracted more slowly in the second.
The economy is expected to further recover in the third quarter and resume positive growth in the fourth.
FPO will revise the country’s gross domestic product (GDP) for 2009 in the next two months. It had earlier forecast GDP would contract with 3% this year.
Now, while various economic figures do stay volatile, there are positive aspects to the economic growth. As the economy now signal recovery, the FPO sees a need for private companies to prepare for investment expansion. FPO says they should not wait until the economy fully recovers because that might be too late.
The FPO advised the government to accelerate spending to ensure it meets its target, and forge ahead with implementing Thailand’s investment projects under the Thai Khem Kaeng (Stronger Thai) slogan to lead the way for private companies to decide to increase investment because the investment in the second quarter remained worrying.
