BANGKOK, 29 May 2015 – The Bank of Thailand (BoT) has reported that the economy in April was seeing sluggish recovery as people remained extremely cautious with their spending.
Ms Roong Mallikamas, Senior Director of the BoT’s Macroeconomic and Monetary Policy Department, made a statement concerning the overall economic condition during the month of April 2015, saying recovery was still unsteady and was impeded by limited household and business spending. Growth of private consumption dropped from 0.4 percent in the previous month to minus 1.3 percent in April while people’s average income decreased, both in the agricultural and non-agricultural sectors.
Despite a decline in the unemployment rate, the hourly wage was found to be quite low, providing no boost to household purchasing power and consumers’ confidence. Private investment expanded 0.9 percent, slightly less than the previous month when it was 1 percent. Exports were also down across the board, with the average growth standing at minus 1.7 percent.
Nonetheless, the Senor Director cited the weak baht resulting from the policy interest rate cut and the rebounding tourism sector as two outstanding positive factors.
The BoT is expected to adjust down its 2015 GDP growth estimate to below 3.8 percent during the meeting of the Monetary Policy Committee on June 10.
