BoT: Economic trends to improve; Business confidence index to rise

BANGKOK, June 30 (TNA) – Thailand’s economy is expected to have hit bottom and the business confidence index is projected to increase to 50.2 in the next three months, its first rise in 15 months, a senior Bank of Thailand (BoT) official said on Tuesday.
 
Amara Sriphayak, senior director of the BoT Domestic Economy Department, said several economic indicators in May, such as the industrial production and consumer confidence indices, began to stabilise although they continued to contract which showed signs that there is little chance for the economy to slip further.
 
Also, the business confidence index in May improved to 45.4 from 39.2 the previous month as three-month advance purchase orders for electronics and electrical appliances  increased, Mrs. Amara said.
 
The projected business confidence index for the next three months rose to 50.2 attributed to transparency in government investment which could assist the gross domestic product (GDP) for the second quarter this year to move into the black, she said. However, the GDP for calendar 2009 is expected to remain contracted.
 
Private investment contracted 16.5 per cent as investors continue to await investment by the government, and there is no sign of private investment in near-term, said Mrs. Amara.
 
Exports in May contracted 26.5 per cent on value of US$11.55 billion, while imports plunged 34.3 per cent on value of US$9.21 billion, the service sector suffered a deficit of US$949 million, current account enjoyed a surplus of US$1.39 billion and inflation dropped 3.3 per cent.
 
Core inflation contracted 0.3 per cent, its first contraction since January 2004 on the back of free education provided by the government and good prices and several items of service fundamentals which were quite high last year. (TNA)