Bad month for private sector investments
Private investment in Thailand continued to see a slowdown in January along with a contraction in exports, particularly to China, although private consumption and government expenditure improved.
Fiscal Policy Office (FPO) director-general Krisda Chinavicharan said the slowdown in private investment was marked by a 5.8-per-cent contraction in cement sales last month. However, property-tax revenue rose for the second consecutive month partly on the acceleration of property transfers amid concerns over enforcement of new taxes on land, buildings and inheritance.
Private consumption in January, based on value-added tax collected from domestic purchases, rose 9.5 per cent year on year. Motorcycle sales rode into positive territory, rising 14.5 per cent year on year.
The Consumer Confidence Index fell slightly from December to 69.7, on concerns over slow economic recovery and a consistent slide in crop prices. Scores below 100 indicate low confidence.
Exports shrank 3.5 per cent year on year in January mainly on a contraction in agricultural and agri-industry products. Exports to China slumped by 19.7 per cent, to Japan by 7.5 per cent, to the European Union by 5 per cent and to Asean by 4.8 per cent.
On the fiscal front, the government faced a deficit of Bt57.6 billion in January. Its net revenue totalled Bt158.9 billion and budget disbursement amounted to Bt215.7 billion.
Headline inflation in January was minus-0.4 per cent, the first contraction in five years, due mainly to drops in retail fuel prices. The unemployment rate was 1.1 per cent. Thailand’s foreign-exchange reserves were US$155.4 billion, about 2.7 times the country’s short-term external debts.
