BANGKOK, 26 June 2014 – The Fiscal Policy Office (FPO) under the Ministry of Finance has reported an improvement in the overall economy in May as the easing political tension has allowed for growth in public spending and private investment.
FPO Director Somchai Sujjapongse indicated that the Thai economy in May showed signs of recovery, thanks to the brighter political prospects. In line with the consumer confidence index of 60.7, the first increase in 14 months, domestic consumption expanded 0.1 percent and, in turn, helped push up revenue from value-added tax collections.
As confidence was being restored, private investment in May also improved from the month before, especially in the construction sector. Meanwhile, public spending picked up the pace and more funds were disbursed to various projects after the political crisis had passed.
Despite a decline in exports and the increasing inflationary pressure, Mr Somchai affirmed that the stability of the Thai economy would remain strong. He viewed the month of May as a transitional period, after which the economy would be able to move forward in full force.
