Thai August exports rise 18.4% on year

Sep 28, 2007 - Thailand's exports rebounded strongly in August, rising 18.4 per cent from a year earlier as shipments to Asian and European markets surged, central bank data showed on Friday.

Economists polled by Reuters this week had forecast a 17.6 per cent increase in exports compared with a rise of 6.2 per cent in July.

August imports rose 12.1 per cent from a year earlier, the data showed, below expectations of a 13.9 per cent increase and compared with a 3.7 per cent rise in July.

Record exports of US$13.82 billion and record imports of US$12.85 billion produced an August trade surplus of US$973 million, above expectations of a US$700 million surplus.

August's current account surplus widened to US$735 million from US$367 million in July, but was below the US$900 million analysts had expected.

Industrial production in August rose higher-than-expected 10.2 per cent from a year earlier after a revised 7.5 per cent growth in July and 4.1 per cent in June.

Thailand's Economic Growth Accelerates In Q2

Sep 3, 2007 - The Thai economic growth accelerated on exports in the second quarter, government data showed Monday.

The economy grew 4.4% year-over-year in the second quarter, larger than a revised 4.2% growth registered in the prior quarter, the Office of the National Economic and Social Development Board said. The growth number for the first quarter was revised down from the initial estimate of 4.3%. Economists were looking for an annual growth of 4.1% in the second quarter. On a sequential basis, the GDP growth stood at a seasonally adjusted 1.3%, slightly larger than the 1.2% in the first quarter.

During the first half of the year, economy expanded 4.3%.

The report said although the exports growth slowed to 22.6% from 32.9% in the first quarter, net exports was the main contributor to the annual GDP growth.

Government expenditure surged 7.4% in the second quarter, while household consumption improved only by 0.9%, continuing its downward trend since the second quarter of 2006. Total investment moved up 0.2%, reversing a 1.5% decline in the previous quarter as public investment increased. Private investment slid 0.8%, while public investment growth climbed at a faster pace of 3.1%.

Agriculture production growth increased to 9.7% from the 3.3% growth seen in the prior quarter. Meanwhile, non-agricultural sector growth came in at 4.0%, smaller than the 4.3% rise recorded in the first quarter reflecting slowdowns in most major sectors.

Manufacturing improved at a slower pace of 4.4% compared to 4.6% in the prior quarter. This resulted from the slowdown in light industries as well as capital goods and high technology industries growth.

Meanwhile, mining and quarrying sector improved 5.6%, larger than the 1.1% growth seen in the first quarter. Construction sector grew 3.7% on the back of public sector construction. Wholesale and retail trade advanced 2.4%, due to an increase in agricultural products in the market.

Merchandise exports decelerated to 7.9% in the second quarter from the 8.5% seen in the first quarter. On the other hand, services receipts climbed 1.8%, larger than the 0.5% rise in the previous quarter. Merchandise imports were up 3.0% and service payments jumped 7.2% in the second quarter. The trade balance at current market prices showed a surplus of 51.4 billion baht.

Thailand Central Bank Holds Key Rate After Five Cuts

Aug 29, 2007 - Thailand's central bank unexpectedly kept its benchmark interest rate unchanged for the first time this year after a U.S. housing-loan crisis caused stocks and the baht to slide.

The Bank of Thailand maintained its one-day bond repurchase rate at 3.25 percent, the central bank said in a statement in Bangkok today. The decision was predicted by five of 15 analysts surveyed by Bloomberg. The others expected a reduction.

The central bank said it refrained from cutting interest rates because of turmoil caused by a crisis in the U.S. housing market. Thai stocks have slumped 9 percent in the past month and the baht has retreated from close to a 10-year high against the dollar as foreign investors pared holdings of riskier assets. Policy makers next meet on Oct 10.

Thailand's junta-installed government has lifted spending and the central bank has reduced rates this year to boost economic growth in the second half of 2007. Consumer confidence may also pick up from a five-year low after the government said it would hold an election in December, returning the nation to democracy after September's coup.

Thailand's economy expanded 4.3 percent in the first quarter from a year earlier, matching the pace of the previous three months. The government expects growth of 4 percent this year, the slowest pace since 2001.

Thailand's government has set Dec. 23 for an election. An elected administration will help bring the nation ``back into the international community'' and restore confidence, Prime Minister Surayud Chulanont said Aug. 27.