Thai economy continued to expand in October: BoT

Thai economy for the month of October continued to grow in correspondence with expansion in exports, tourism and spending of the government sector, said Mr Don Nakornthab, senior director of the Bank of Thailand’s Economic and Policy Department.

Exports expanded 13.4 percent while tourism expanded 20.9 percent for the month of October compared to the same period last year when tourism dropped as a result of the government’s crackdown on the zero-dollar tour, said Mr Don on Thursday (Nov 30), adding that spending of the government sector upped 4.7 percent, excluding overseas money transfers, with investment spending expanding 15.1 percent.

Production of the industrial sector remained stable due to the fact that there were several holidays in October and the fact that it was the month of national mourning over the Royal Cremation of the late King Bhumibol.  Overall industrial production index dropped 0.1 percent with substantial drop in the production of air-conditioners due to cool weather.

However, Mr Don said he was optimistic that industrial production would pick up in November.

Private investment slowed down in October due to seasonal slowdown in the construction sector because of the rainy season, but investment in machinery was strong.  He expected investment in construction sector would pick up in November along with consumption of the private sector.

Revenue of the farm sector shrank 4 percent compared to September’s 1 percent expansion due to flooding the eastern region which affected rice production, resulting to 1.6 percent decrease in overall production.

Farm prices for the month of October continued to drop by 2.4 percent, but it was still much better than the situation in September when farm prices fell 6.1 percent.