Regional sentiment index rises in all parts, raising strong hope that the 3.8% growth target will be achieved

The Fiscal Police Office (FPO) yesterday (Sept 28) revealed improved economic sentiments in all parts of the country, signalling strong economic recovery of the country this year.

FPO director Krisada Chinavicharana revealed that the Regional Economic Sentiment Index, a survey of expectations among operators for the next six months, was higher than the 50-point threshold separating optimism from pessimism in September.

The index, he said, gauges confidence in six aspects: economic outlook, agriculture, industry, service, employment and investment.

The central region had the highest confidence at 87.9, due to increasing trend in service sector at 97.7 particularly tourism, and investment.

But Bangkok and its outskirts had the lowest confidence at 61.5, he said.

He said several provinces in central region are seeing rising tourists as tourism season is approaching, thus pushing investment confidence index to 98.6.

Sentiment index for the western region is 82.2, while the Northern region is 74.9, the South 71.3, and the East 70.6.

The improved sentiment indices in all regions indicated signs of recovery picking up and that will see the country’s economy likely to achieve the 3.8% growth forecast by the Bank of Thailand, he said.

He went on saying that economy in August improved significantly as a consequence of the growth in exports.

Thailand’s exports grew by an outstanding 13.2% which represents a 55 month peak.

Accordingly, this has allowed the Consumer Confidence Index to increase by 62.4%, the highest in 4 months which the Fiscal Policy Office says signals improved consumer expectations for future economic health.

As a result of this the Ministry of Finance, he said, will be making adjustments to their economic projections this October and unofficial estimates are that the economy could grow by as much as 3.8%.