BANGKOK, 14 June 2014 – The Bank of Thailand asserted on Friday that state sector spending is beginning to return to normal, leading it to believe that the economy will improve in the latter half of the year.
BOT spokesperson Rung Mallikamat said, referring to the road shows in Singapore and Hong Kong, which were jointly held by the BOT and the Stock Exchange of Thailand, that most investors who came to the road shows were confident in the Thai economy, although they inquired about the rate of the economy’s re-invigoration. Ms. Rung explained that BOT officials told the investors that economic indicators began to stabilize in March and did not decline in April. The BOT expected that revival would be seen in the 2nd half of 2014, in major part because of state spending, private sector spending, exports and consumption.
However, the spokesperson admitted that consumption might not fully recover this year due to the current high level of household debt, adding that the quality of loans also dropped, especially with loans to SMEs, which were afflicted by the economic slowdown due to their limited funds reserves.
