thai growth weakest since .......

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yartims
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thai growth weakest since .......

Post by yartims » August 21, 2019, 4:38 pm

https://uk.yahoo.com/finance/news/thail ... 40819.html

(Bloomberg) --

Thailand’s economy grew at the slowest pace in almost five years in the second quarter as exports and tourism were buffeted by U.S.-China trade tensions and a strong local currency.

Gross domestic product rose 2.3% from a year ago, down from 2.8% in the first quarter, the National Economic and Social Development Council said Monday. That’s the slowest pace since the third quarter of 2014. The expansion matched the median estimate of 2.3% in a Bloomberg survey of economists.

A slowdown both domestically and abroad affected the quarterly growth, Thosaporn Sirisumphand, the council’s secretary general, said at a briefing in Bangkok. The U.S.-China trade war, global jitters and a drought all remain as risks going forward, although a government stimulus package announced last week could help offset the damage, he said.

Thailand’s trade-reliant economy has been hit by slumping exports, a surging currency and cooling tourist arrivals, with a looming delay in the budget since a new government took office last month posing a further risk. The central bank unexpectedly cut its benchmark interest rate earlier this month for the first time in more than four years, and said it sees more room to ease ahead.

Downside Risks

The economic council cut its full-year growth forecast to 2.7%-3.2% -- down from an earlier estimate of 3.3%-3.8% -- as the second-quarter pace should be the slowest this year, the council’s deputy secretary-general, Wichayayuth Boonchit, told reporters. The forecast for exports was cut to a 1.2% contraction, from previous estimates of 2.2% growth.

After the release of Monday’s data, Bank of Thailand Governor Veerathai Santiprabhob said the monetary authority will likely cut its 2019 economic growth forecast at the September policy meeting. The central bank currently estimates 3.3% expansion for 2019.

The sustained decline in export gains has spilled over to domestic demand, Nomura Singapore Ltd. economists Euben Paracuelles and Charnon Boonnuch wrote in a research note Monday. They maintained their expectation for full-year GDP growth of 3.0%, but added that "the balance of risks to our forecast remains tilted to the downside."

Gareth Leather, senior Asia economist at Capital Economics, said the expansion could slow to 2.5% this year.

"With weak global demand and a downturn in the tourism sector likely to drag on growth prospects over the coming quarters, we expect the economy to remain weak," he wrote in a research note.


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AlexO
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Re: thai growth weakest since .......

Post by AlexO » August 22, 2019, 4:20 pm

Well there is a surprise. You can get the same prediction in Day and Night every day and it does not cost thousands.

TJ
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Re: thai growth weakest since .......

Post by TJ » August 23, 2019, 2:00 am

Sony, Harley-Davidson, Others Move Production from China to Thailand

Thai officials glimpse a silver lining in the U.S.-China trade war as companies such as Sony Corp. move production to Southeast Asia’s second-largest economy. At least 10 firms are in the process of relocating some production to Thailand from China, according to the National Economic & Social Development Council. More than a dozen others could potentially choose Thailand, it said in a statement.

“We may not see the impact on the economy now, but in the second half of 2019, it could become a positive factor for growth,” the agency’s Deputy Secretary-General Wichayayuth Boonchit said Monday.

Trade tension is sapping growth in Asia’s export-dependent economies, sparking calls for looser monetary and fiscal policies. Nations such as Vietnam, Indonesia and Thailand are also vying to lure investment from manufacturers seeking to escape U.S. tariffs on imports from China.

The 10 firms moving some manufacturing to Thailand include Sony, Sharp Corp., Harley-Davidson Inc. and Delta Electronics Inc. Most have finalized locations near Bangkok or in the Eastern Economic Corridor development zone on the east coast of Thailand, according to the economic and social development agency.

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Stantheman
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Re: thai growth weakest since .......

Post by Stantheman » August 23, 2019, 6:54 am

I dought there will be much of an impact this year on the companies moving production from China to Thailand due to the embargo. There will be factories to build, employees to train and components to stock prior to any new meaningful manufacturing starting.
Last edited by Stantheman on August 23, 2019, 8:53 pm, edited 1 time in total.

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Giggle
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Re: thai growth weakest since .......

Post by Giggle » August 23, 2019, 8:08 am

The dubious honor of Asia's premiere sweatshop slipping from China to Thailand. I thought it would be India, but no.

Ahhh paradise.

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UdonExpat
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Re: thai growth weakest since .......

Post by UdonExpat » August 24, 2019, 12:07 pm

As Thailand continues to develop and improve its infrastructure so will Thai wages increase and the inevitable inflation that goes hand in hand with capitalism. Consequently, those on fixed incomes will find their buying power deteriorating over time. Weak growth expands the time frame for increasing costs and strong growth shortens it.

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Re: thai growth weakest since .......

Post by yartims » August 24, 2019, 9:13 pm

https://www.ft.com/content/5d3e6e20-c33 ... 6ca66511c9

Thailand unveils $10bn stimulus for struggling economy
Package approved after kingdom reports slowest rate of growth in five years


Analysts said that while the stimulus measures would inject more money into the economy, their impact might be limited because of the souring outlook for the global economy and Thailand’s own struggle to tackle bigger problems around skills and competitiveness.

“This stimulus package . . . only looks at the fast distribution of money into the system,” said Pavida Pananond, an associate professor at the Thammasat Business School in Bangkok. “This stimulus is good for the short term, but I don’t think it would address the root cause of the problems in the Thai economy, which would require much more profound structural reform.”

Thailand’s central bank said on Monday that it would lower its 2019 growth forecast of 3.3 per cent because of escalating trade protectionism.
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