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October hit a strong contraction
Date: November 30, 2020 at 3:28 p.m.
BOT Releases Economic Figures In October, Strong Contraction After Temporary Support Expired
Dr. Chayawadee Chai-anan, Senior Director Macroeconomic Department The Bank of Thailand (BOT) said that the Thai economy in October 2020 contracted at a higher rate compared to the contraction of the previous month. From temporary factors that have been exhausted And the other part is the result of a high base last year. Private consumption indicators contracted from a slight expansion last month. After the temporary factor, the extra long weekend is over
The value of exports of goods without gold also increased from the previous month. But it contracted more compared to the same period last year. As well as the greater contraction of the private investment indicators. Partly because of last year’s high base effect. While public spending was reduced due to the delay in the disbursement of fixed costs. The tourism sector also contracted sharply as a result of restrictions on international travel.
Economic stability Headline inflation was less negative due to a significant increase in energy prices. Overall, the labor market continued to improve, but remained fragile. The current account registered a slight decrease in the surplus as a surplus of services, income and transfers.
Details of Thailand’s economic conditions in October 2020 are as follows.
Private consumption indicators contracted from a slight expansion last month. This followed the decrease in spending in almost all categories. Due to temporary factors, the extra-long holidays from the previous month have ended. As a result, spending on nondurable products has been reduced again. And the categories of services contracted further. In addition, the base effect was high last year as a result of the stimulus measures for public spending, but private consumption in general remained in the direction of recovery. This was in line with the supporting factors that gradually improved purchasing power. Both employment Household income, both within and outside the agricultural sector AND consumer confidence In addition, continued to receive support from government measures.
The value of merchandise exports contracted by 5.6% compared to the same period last year. Excluding gold exports The value of exports contracted 5.0%, a slight contraction compared to the previous month after exports in some categories. Especially, products whose value moved in line with oil prices, agricultural products and processed agricultural products with high base effects in the previous year, however, some categories of export products continued to improve, such as household appliances. Machinery and equipment However, manufacturing production decreased significantly due to the production of motor vehicles and petroleum products. Part of which was the result of last year’s low base.
Private investment indicators contracted more than the previous month. According to investment in both machinery and equipment AND construction category Investment in machinery and equipment contracted mainly in line with the import of capital goods. While investment in construction decreased slightly in line with the permitted construction areas. This was in line with the decline in housing construction activities.
Public spending, excluding money transfers, declined from a continuous expansion in the past. This was due to the delay in the disbursement of fixed expenses, however, investment from both the central government and state companies continued to expand. And play an important role in supporting economic recovery. The value of merchandise imports fell by 12.1% compared to the same period last year. If you do not include gold imports The value of imports contracted by 9.9%, the contraction of the previous month in almost all categories. Both fuel imports Consumer and capital goods were in line with the contraction of domestic spending.
The number of foreign tourists continued to contract compared to the same period last year. Of the existing measures to restrict international travel in Thailand Even this month, the government began allowing travelers with a Special Tourist Visa (STV) to enter Thailand. But there are still some
Economic stability Headline inflation became less negative as energy prices increased significantly, however core inflation declined. Part of the use of promotional measures by entrepreneurs Regarding the labor market in general, it continued to improve, both in employment and income. But still fragile This is partly reflected both in the unemployment rate and in the high proportion of job seekers in the social security system. The current account recorded a slight decrease in the surplus in services, income and transfer deficit. While the trade surplus was close to before
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