Thailand: economy expected to slow down in February

The country’s economic conditions in February are likely to slow down upon a decline in private spending and investment affected by political uncertainties, according to the KASIKORN Research Center (KRC).

The leading think tank said on Wednesday that economic figures released in January had not shown a clear picture. Exports grew 14.5 per cent, up from 11.7 per cent in December last year, while imports expanded only 0.4 per cent, down from 26 per cent. The trade balance in January was in deficit of US$388 million.

Although the country's exports had expanded continuously, the private spending had slowed down for both consumption and investment. The private consumption index in January increased 0.7 per cent, compared with 2.2 per cent in December.

The private investment index rose 4.7 per cent, compared with 5 per cent in December. The industrial production index expanded slowly at 5.8 per cent upon a decline in local demand. In February, KRC projected the private spending for consumption and investment would decline since confidence had been shaken by the political uncertainties.

It believed local retail prices would stay at a close level to that of January. Foreign capital inflow is projected to decrease as could be witnessed by a sharp drop in foreign net buying volume in the stock market.

KRC said the baht remains stable when compared with the greenback, boosted by the strengthening of the Japanese yen.

Source