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Economic recovery accelerated in November, says Finance Ministry


Economic indicators for November suggest Thailand’s recovery from Covid-19 is gathering pace, Wuttipong Jittungsakul, fiscal policy adviser to the Fiscal Policy Office, said on Monday.

Collection of VAT, an indicator of private consumption, rose 2.5 per cent from the previous month while contracting 6.5 per cent year on year (YoY) – a big improvement on the 9.4 per cent contraction in October.
Auto sales in November increased 8.7 per cent from October and contracted 7.2 per cent year on year, significantly improving from the 25.9 per cent YoY contraction in October, he said.

As for private spending, commercial vehicle sales rose 8.2 per cent year on year, for a third consecutive month in growth. However, the growth rate decelerated from 10.4 per cent and 13.5 per cent in October and September respectively.

Imports of capital goods expanded 6.2 per cent month on month, but contracted 3.2 per cent YoY, compared with 17 per cent yearly contraction in October.

Cement sales grew 10.8 per cent from the month before but contracted 1.5 per cent YoY – better than the 9.1 per cent contraction in October.

Government spending, which is a key driver of the economy, increased 100.6 per cent year on year to Bt363.8 billion.

Consumer confidence also grew in November, with the spending sentiment index up 52.4 to reach its highest level in nine months after the second consecutive monthly increase.

Farmers’ real income rose 13.6 per cent, boosting their purchasing power. Covid relief packages have driven rising consumer sentiment and farmer’s income, said Wuttipong.

Meanwhile, Pisit Puapan, executive director of the macroeconomic policy bureau, said most on Thailand’s regional economies also expanded in November on the month before.

The economic situation in the Northeast, Central Region, Greater Bangkok, East and South improved from October. However, economic conditions in the West and North stayed flat in November compared with October.

Published : December 28, 2020

By : The Nation