Government spending cushions Thai economy

BANGKOK, December 1 (TNA) - The Bank of Thailand (BOT) says that the government's spending has mainly cushioned the national economy, while external risk factors remain the challenges against the Thai economy. Roong Mallikamas, BOT's Senior Director of Macroeconomic and Monetary Policy Department, told journalists on Tuesday that Thailand’s consumer confidence is showing signs of recovery, boosted by the government’s attempt to bolster the national economy and to speed up budget disbursements, including those for mega-investment projects, along with the expansion of private consumption in goods and services. Roong pointed out that several Thai industrial businesses, including those of construction and materials, are showing a positive sign and it is believed that investment by other private businesses will follow suit if the national economy keeps recovering. Roong noted, however, that it needs to be closely monitored whether the Thai government’s investment would take place according to its plans. Roong made the remarks after reporting that the Thai economy steadily recovered in October 2015, but it was still under a vulnerable climate and the recovery could be affected by the external risk factors, including the global economic uncertainty, particularly in China and the Association of Southeast Asian Nations (ASEAN), as well as the volatility of global financial markets, an international political conflicts and terrorism. Besides, Thai exports continued declining by 8 per cent due to the retreating ASEAN and Chinese economies, Thailand’s key trading partners, while Thailand’s current account during the first 10 months of this year stood at 26 billion US dollars. Meanwhile, the Ministry of Commerce projected that Thailand’s inflation in 2016 should turn around and increase by 1–2 per cent, from a contraction of around 0.2–1 per cent this year, resulting from the recovering national economy. (TNA)