BANGKOK, 31 August 2011 – The Bank of Thailand (BoT) has reported that the Thai economy underwent a slight slowdown in July, especially in the agricultural and industrial sectors; however, quick recovery is expected with the help of the Government.
According to Senior Director of the BoT’s Domestic Economy Department Methee Supapong, the national economy for July 2011 was considered sluggish, considering production shrinkages in the agricultural and industrial sectors, while the domestic demand also declined, particularly in the area of private consumption. Nonetheless, the export and tourism sectors were reportedly enjoying steady growths.
The July inflation saw a modest expansion of 2.1 percent, less than the same period last year, as a result of Thai people’s decision to put a lid on their consumption while awaiting details on the new government’s policies as well as lower income among agriculturalists. However, Mr Methee projected the Thai economy and consumption to make a swift rebound once more clarity was seen on related policies of the Government.
Regarding the immediate reduction of Oil Fund collection and fuel prices, the Director said the central bank was in the process of studying its impact. Initially, the policy is believed to benefit general consumers, rather than business operators, and also to cause inflation to rise in line with higher consumption of oil.