FPO optimistic about fiscal outlook
- Published: 29/08/2013 at 05:07 PM
- Online news:
The economy is showing signs of rebounding, after it bottomed out in the first half of this year, the Fiscal Policy Office (FPO) said on Thursday.
"The economy in July showed signs of a turning point for the first time and the FPO is keeping an eye on whether it is sustainable,’’ Ekniti Nitithanprapas, FPO deputy director-general, told a press conference.
The signs were positive after export growth in July, the official added. In July, exports contracted 1.5% compared with the same period of last year, but increased 0.8% from June.
As such, the office will revise up predicted economic growth for September from its previous projection of 4.5% for gross domestic product.
Mr Ekniti pointed to robust growth in electronic exports in July, which was up 1.1% quarter-to-quarter, as a driver behind the ‘’turning point’’.
Figures on exports to other Asean countries are also positive, he said.
Exports to Cambodia, Laos, Myanmar and Vietnam expanded by 8.3% in July, he added, and by 6.8% to other Southeast Asian markets, while the tourism sector grew 22.5% last month with one-third of tourists coming from Asia and East Asia.
Despite this, Mr Ekniti cautioned that oil prices could dampen the Thai economy for the rest of the year, due to the crisis in the Middle East.
The office predicted oil prices would stand at US$101-111 per barrel. If it rises beyond this, the economic growth projection will be reviewed, he said.
About the author
- Writer: Wichit Chantanusornsiri
Position: Business Reporter