BANGKOK, 27 June 2013 The Fiscal Policy Office has reported that the Thai economy in May showed signs of contraction compared to the previous month. The office is closely monitoring the U.S. and Chinese economies for fears that they might have an impact on the Thai economy.
According to Director of the Fiscal Policy Office Somchai Sujjapong, the contraction signs in May were the result of a 7.5% year-on-year decrease of the March Industrial Production Index. Other factors that affected the economy in May included shrinking domestic spending, exports, and value-added tax collection.
Mr Somchai assessed that the Thai economy in the second quarter of 2013 would grow less than it did in the previous quarter. Furthermore, the U.S.’ tapering of quantitative easing and the slowing down of the Chinese economy might affect the Thai economy in the second half of the year, the director said.