Northeast economy shows slight recovery in Q1 of FY2015

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BANGKOK, 7 May 2015 – The Northeast economy has been showing positive trends in first quarter of fiscal 2015, thanks to increased disbursement of government funds.

According to the Bank of Thailand’s Director for its Northeast office Thanedchai Angwarawong, the overall economic situation in the region from January – March 2015 has increased slightly from the fourth quarter of last year, due to greater public spending that could continue until the second quarter.

However, the high rate of household debt has dampened consumer confidence, and private construction showed contraction, due to investors holding out for clearer signs of economic recovery.

Less contraction was seen in the agriculture sector, thanks to stabilizing prices of agricultural products. Meanwhile, commercial banks recorded a growth in saving deposits from the previous quarter, mirroring government statistics.

In addition to public spending, the government has also approved four businesses for nano-financing solutions, as part of its policy to expand sources of capital for the general public.

Nano-financing licenses fall under a loan bracket of no more than 100,000 baht per person, charging 3 percent per month. This service is provided under the supervision of the central bank, in a move aimed at encouraging general spending.