Thai economy enjoys continued recovery in December, says BoT

BANGKOK, Jan 30 (TNA) – The Thai economy enjoyed a continued recovery in December 2009 as witnessed by a marked improvement in state and private spending, farmer incomes, tourism revenue, and exports, according to the Bank of Thailand (BoT).

Suchart Sakkankosone, senior director Domestic Economy Department, said the economy for the whole is expected to shrink 2.7 per cent given the continued economic recovery.

The industrial production index surged to a new record high of 35.7 because the number of purchase orders for electronic products continue to rise.

The production capacity utilisation in the industrial sector climbed up to 70.1 per cent as exports surged by 26.2 per cent from the same month last year with a value of US$14.53 billion.

The export value increased in all product categories but products made in labour intensive industries.

Mr Suchart believed exports would continue growing further this year with ASEAN becoming the top export destination with a portion of 22.5 per cent, followed by China with 12.9 per cent, Europe with 12.4 per cent, and the United States with 10.7 per cent.

Imports grew 33 per cent year on year with a value of $14.65 billion, resulting in a trade deficit of $122 million, but unless gold imports and exports are included, the balance of trade would register a surplus of $919 million.

Loans extended in December grew 3 per cent with an accelerating increase in the loans provided in the household sector, particularly housing loans. He said the central bank would need to monitor the overall economy although the economy had picked up.

In particular, the bank would keep a close watch on higher farm product prices because it was uncertain how much farmers would benefit from the price hike.

Regarding tourism, Mr Suchart said, the number of tourists in December reached 1.68 million, up 45.2 per cent from the same month last year. (TNA)