August public debts at 44.63% of GDP

Thailand’s public debt in August was Bt5.3 trillion, or 44.63 percent of gross domestic product (GDP), according to a senior Finance Ministry official report.
Chularat Suteethorn, director general of the Public Debt Management Office, said public debt originated from the government at Bt3.678 trillion, non-financial state enterprises at Bt1.097 trillion, special financial institutions at Bt524.133 billion and autonomous agencies at Bt834.69 billion.
The Financial Institutions Development Fund was debt free.
Public debt in August increased by Bt74.276 billion from July.
Chularat said the Bt5.3 trillion public debt constituted international debts at Bt375 billion or 7.09 percent, and domestic debts at Bt4,924 billion or 92.91 percent.
Somchai Sujjapongse, director general of the Fiscal Policy Office, said the government’s revenue for the 2013 fiscal year was Bt2,156 trillion, exceeding the target by Bt57.4 billion or 2.7 percent, and higher than last year’s revenue by 9.2 percent.
The major contributing factor was revenue from autonomous agencies which was Bt47.8 billion or 45.7 percent higher than projection, partly thanks to the high revenues from petroleum concessions and third-generation frequency (3G) biddings.
He said the revenue in the 2013 fiscal year, which was Bt50 billion over target, has strengthened Thailand’s financial stability and economic expansion for the next budget year. (MCOT)

Thai economy in second half of 2013 likely to grow 3.5%

The University of the Thai Chamber of Commerce lowered its growth projection for the Thai economy from 4.3 to 3.5 percent this year.
Thanawat Polvichai, director of the Economic and Business Research Centre of the University of Thai Chamber of Commerce, estimated that the Thai economy in the second half of the year - despite the improved domestic economy - financial crises from the United States, the European Union and Japan could affect the country’s economy to grow only 3.5 percent, a bit lower from previous projection of 3-4 percent.
Thai exports will expand at 1.5 percent from the earlier forecast at 3-5 percent, while imports would expand by 3.9 percent, resulting in a US$25 billion trade deficit, higher than last year at Bt20 billion.
The inflation rate was estimated at 2.3 percent on average based on the currency exchange rate of Bt30-31 against the US dollar.
Dr Thanawat attributed the grim outlook for the Thai economy and exports in the second half of this year to investors’ lack of confidence in the government’s Bt350 billion flood management plan and in the Bt2 trillion infrastructure investment and delayed budget disbursement.
However, he said that if the conditions above can be managed, the Thai economy next year would likely grow 4.6-5.5 percent, exports increase 5-7 percent and inflation stay at 2.8-3.3 percent. (MCOT)

Thai industrial confidence index worst in 23 months

Thailand’s industrial confidence index (ICI) in September plunged for the 15th consecutive months to its lowest in 23 months due to concerns over floods and political instability, the Federation of Thai Industries (FTI) said today.
FTI president Payungsak Chartsuthipol said the latest ICI survey registered a decline to 90.4 in September from 91.3 in August.
Industrial operators were worried about the flood situation which obstructed manufacturing and transport while the domestic and international economic slowdown, higher production costs, tougher competition and political uncertainty remained negative factors for their businesses, he said.
Manufacturers were pinning their hopes on the government’s investment in infrastructure development which would stimulate the economy and industries, the FTI president said.
Payungsak said industrialists want the government to find loan sources for their business restoration after the flooding, and stabilize the Thai currency movement as well as stimulate the economy to boost domestic consumption.
The government should also strengthen the country’s political stability and maintain energy and electricity prices - the major cost of production.
Surapong Paisitpattanapong, spokesman of the FTI’s Automotive Industry Club, said auto production in September was 194,737 units - below the 200,000 figure for the second month, and a 16.28 percent decrease from September last year.
September’s auto production was slightly higher than August by 0.86 percent and the total production in January-September was 1,930,251 units, higher than the same period last year by 11.99 percent.
Thailand exported 118,253 fully-assembled cars in September - the highest number in the 25 years since exports and the tally began - while exports in the first three quarters of the year reached 847,341 units or 99.88 percent of the total production for export, he said.
Total export value was Bt383.67 billion, higher than January-September last year by 7.88 percent. (MCOT)

Commerce Minister firm on rice deal with China

Deputy Prime Minister Niwatthamrong Boonsongpaisan insisted last Friday that China has promised to buy one million tonnes of rice from Thailand annually.
He reiterated the government-to-government rice deal with China would proceed after criticisms from several quarters which said it would be impossible for the mainland to make such a huge purchase.
Niwatthamrong, concurrently the commerce minister, said he would lead a Thai delegation to China next month to discuss the rice sales with his Chinese counterpart following a recent agreement by leaders of the two countries.
Prime Minister Yingluck Shinawatra said early this week that her Chinese counterpart Li Keqiang agreed to buy one million tonnes of rice and 200,000 tonnes of rubber from Thailand annually for the next five years.
Niwatthamrong said the Thai government has set a target to sign the rice deal with China as soon as possible, December at the latest, and Thailand would also offer to sell other agricultural produce including rubber, tapioca, maize and sugarcane.
The two countries have agreed on a barter trade of Thai agricultural produce and China’s high-speed trains, he said.
He said Thailand would sell 1.2 million tonnes of rice to a Chinese state enterprise in Hellongjiang province this month with an agreement to deliver the grains in a year.
Besides, the Thai Rice Exporters Association has signed agreements to export one million tonnes of rice to Chinese state enterprises in the next five years, or 200,000 tonnes annually, he said.
He said Thailand has three rice export agreements with China at a combined export volume of 7.2 million tonnes over five years, and rice in the country’s stockpiles would be sufficient for exports though some were damaged by floods.
He said the Commerce Ministry would urgently hold discussions with the Bank of Agriculture and Agricultural Cooperatives (BAAC), which has stopped payments to farmers for their rice sales due to a liquidity problem.
The Cabinet has approved a Bt270 billion budget for the rice pledging scheme in the next harvests and it is the duty of the Finance Ministry and BAAC to finance the project and allocate payments to farmers, he said. (MCOT)