Private spending as key economic driver in Q1: BOT
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The Thai economy stabilised in the first quarter at a level comparable to the previous quarter, having private spending as the key driver, according to the Bank of Thailand.
Tourism was buoyant, while merchandise exports gradually recovered in line with a stabilizing global economy. On the stability front, unemployment was kept low, and inflation moderated. The currency appreciated from a surplus in the current account coupled with strong capital inflows in the form of direct investment and debt security investment by non-residents.
In March 2013, the overall economy moderated from domestic spending, both consumption and investment. However, merchandise exports picked up in tandem with
production in export-oriented manufacturing industries. Tourism continued to expand robustly. Economic stability was well maintained overall, with low unemployment, easing
inflation, and a slight deficit in the balance of payments.
"(In March, economic stability was well maintained overall. The unemployment rate was low. Headline inflation moderated to 2.69 per cent, thanks to softening prices of energy and prepared food. The balance of payments was in slight deficit, mainly from capital outflows in the form of portfolio and direct investment by Thai investors and firms," the central bank said.
Exports in the month totalled US$20.49 billion, up by 4.9 percent month on month from a recovery in global demand for electronics and automobile, particularly commercial cars. Exports of agricultural products also improved from a pickup in rice exports, while rubber exports levelled off as the rubber inventory of China, a major importer country, remained high. Nevertheless, fishery exports contracted for the fourth consecutive months as prawn disease continued to cripple supply.
Imports dropped slightly by 0.4 per cent on month, with import value totalling $18.47 billion.
Meanwhile, tourism grew robustly, with 2.3 million foreign tourist arrivals due to an increase in the number of visitors from many countries, notably China and Russia. Tourists from Malaysia dropped, however, as a result of tension in the three southern provinces.
