BANGKOK, 26 June 2014 -The Fiscal Policy Office has revealed that the Thai economy improved in May this year after an end was put to the tense political conflict. It is expected that the economy will be fully recovered from June onwards.
The Fiscal Policy Office Director Somchat Sajjaphong said that the economic recovery that began in May, has resulted in more spending and investment by both the government and the private sector.
Consumption value is growing which is increasing the sum of VAT collections, and in May the consumer confidence index increased for the first time in 14 months to 60.7. The private sector started to commit to more investment, especially in construction, creating an increase of 2% in property tax value in May compared to that of the previous month. In addition, government spending increased to 142.5 million baht, which was a 5.6% increase over the month before. It is expected that the private sector’s consumption and the value of government investment will continue to rise from June.
However, a fall off in international demand was reflected in a -2.1% per year decline in value or -2.6% compared to the previous month, due to a reduction in orders for Thai exports, from China, Japan, ASEAN countries and Australia. Moreover, demand indicators in industry and service businesses are still likely to drop.
