On September 20th, 1999, Mr. Sansern Wongcha-um, Secretary-General of the Office of the National Economic and Social Development Board (NESDB), gave a press conference regarding the Quarterly Gross Domestic Product of Thailand (QGDP), in the Second Quarter of 1999, at Soontorn Hongladarom Briefing Room, the Office of NESDB.
The Secretary-General said that the Thai economy in the second quarter of 1999 showed recovery signs as positive growth of QGDP can be seen in both production approach and expenditure approach, compared to the same quarter of last year.
The Production Approach The growth of production in the second quarter was higher than in the first. The contribution to the growth stemmen from the expansion of manufacturing sector, the main sector, in both exports and domestic goods manufacturing.
The Expenditure Approach the consumption of private households increased, particularly durable goods such as automobiles and electrical appliances. The government expenditure expanded the most, as a result of the government's commitment to economic stimulus plans. The investment showed a positive growth for the first time in the past 9 quarters.
The Secretary-General further stated that, QGDP in the second quarter of 1999 expanded by 3.5 percent compared to the same period last year. When compared to the first quarter of 1999, the seasonally adjusted QGDP also grew by 0.4 percent. The expanding production sectors were as follows;
(1) Agricultural Sector Agricultural production expanded by 1.3 percent in the second quarter of 1999, due to the increase in the production of the crop and livestock sectors by 2.6 percent. In the crop sector, the production of main crops such as rubber, sugar cane, oil crops, vegetables and fruits increased, while that of maize, coffee and tapioca decreased owing to their seasonal cycles.
The production of livestock has increased by 11.9 percent, with the rise in the market price of live bovine stockes being the main drive. Fishery production also decline because of the annual closure of the Gulf of Thailand during April 15 - June 15, as well as the decrease of fishery products export due to the spread of shrimp disease and the prohibition of shrimp farming in fresh water area.
(2) Industrial Sector in the second quarter of 1999, industrial sector expanded by 7.7 percent compared to the same period last year. The following industries experienced a significant rise in production:
Food and Beverages such as agro-industrial products, alcoholic beverages. The trend was fueled by an accelerated stock-up of inventories in anticipation of the expiring brewing license.
Non-metal Production especially cement production.
Electricial Machinery and Domestic Appliance Industry has seen a healthy growth, particularly the 18 percent expansion of the airconditioner.
Automobile Industry expanded by 90 percent.
It was further reported that the contracting sectors were as follows;
(1) Electricity and Water Electricity and water production declined by 4.9 percent. The main reason was that 85 percent of the electricity production decreased by 5.5 percent.
(2) Construction The construction sector contracted by 7.2 percent, which was still an improvement from the first quarter, when the industry eontracted by 25.9 percent.
(3) Financial Sector The financial sector showed a negative growth of 33.1 percent, due to lack of activities in many areas such as corporate lending, deposit and withdrawal. Therefore, the revenue from banking service was contracted.
The Secretary-General mentioned that consumption of private households during the second quarter of 1999 rose by 0.9 percent compared to the same period last year. Government real expenditure increased by 41.3 percent on a yearly basis. Natably the labor costs rose by 20.7 percent and net consumption of goods and services rose by 90.9 percent, as a result of the government's stimulation in budget withdrawal and the commitment to economic stimulus plans.
Capital investment increase for the first time since the first quarter of 1997 or after 9 quarters of negative growth, at the rate of 3.6 percent compared to the same period last year. This was the result of an expansion of the government's investment in construction and machinery at the rate of 11.0 Investment in construction expanded by 7.1 percent and the investment in machinery expanded by 30.5 percent.
Private investment increased by only 0.4 percent, with 8.0 percent growth in machinery and equipment, particularly vehicles and office machinery. Private construction was still in continuous construction. Overall, there were positive signs, such as the low rates of interest and the rising capacity utilization, which should encourage more investment in the near future.
--Development News Bulletin, National Economic and Social Development Board, Volume 14, No. 9 : September 1999--
The Secretary-General said that the Thai economy in the second quarter of 1999 showed recovery signs as positive growth of QGDP can be seen in both production approach and expenditure approach, compared to the same quarter of last year.
The Production Approach The growth of production in the second quarter was higher than in the first. The contribution to the growth stemmen from the expansion of manufacturing sector, the main sector, in both exports and domestic goods manufacturing.
The Expenditure Approach the consumption of private households increased, particularly durable goods such as automobiles and electrical appliances. The government expenditure expanded the most, as a result of the government's commitment to economic stimulus plans. The investment showed a positive growth for the first time in the past 9 quarters.
The Secretary-General further stated that, QGDP in the second quarter of 1999 expanded by 3.5 percent compared to the same period last year. When compared to the first quarter of 1999, the seasonally adjusted QGDP also grew by 0.4 percent. The expanding production sectors were as follows;
(1) Agricultural Sector Agricultural production expanded by 1.3 percent in the second quarter of 1999, due to the increase in the production of the crop and livestock sectors by 2.6 percent. In the crop sector, the production of main crops such as rubber, sugar cane, oil crops, vegetables and fruits increased, while that of maize, coffee and tapioca decreased owing to their seasonal cycles.
The production of livestock has increased by 11.9 percent, with the rise in the market price of live bovine stockes being the main drive. Fishery production also decline because of the annual closure of the Gulf of Thailand during April 15 - June 15, as well as the decrease of fishery products export due to the spread of shrimp disease and the prohibition of shrimp farming in fresh water area.
(2) Industrial Sector in the second quarter of 1999, industrial sector expanded by 7.7 percent compared to the same period last year. The following industries experienced a significant rise in production:
Food and Beverages such as agro-industrial products, alcoholic beverages. The trend was fueled by an accelerated stock-up of inventories in anticipation of the expiring brewing license.
Non-metal Production especially cement production.
Electricial Machinery and Domestic Appliance Industry has seen a healthy growth, particularly the 18 percent expansion of the airconditioner.
Automobile Industry expanded by 90 percent.
It was further reported that the contracting sectors were as follows;
(1) Electricity and Water Electricity and water production declined by 4.9 percent. The main reason was that 85 percent of the electricity production decreased by 5.5 percent.
(2) Construction The construction sector contracted by 7.2 percent, which was still an improvement from the first quarter, when the industry eontracted by 25.9 percent.
(3) Financial Sector The financial sector showed a negative growth of 33.1 percent, due to lack of activities in many areas such as corporate lending, deposit and withdrawal. Therefore, the revenue from banking service was contracted.
The Secretary-General mentioned that consumption of private households during the second quarter of 1999 rose by 0.9 percent compared to the same period last year. Government real expenditure increased by 41.3 percent on a yearly basis. Natably the labor costs rose by 20.7 percent and net consumption of goods and services rose by 90.9 percent, as a result of the government's stimulation in budget withdrawal and the commitment to economic stimulus plans.
Capital investment increase for the first time since the first quarter of 1997 or after 9 quarters of negative growth, at the rate of 3.6 percent compared to the same period last year. This was the result of an expansion of the government's investment in construction and machinery at the rate of 11.0 Investment in construction expanded by 7.1 percent and the investment in machinery expanded by 30.5 percent.
Private investment increased by only 0.4 percent, with 8.0 percent growth in machinery and equipment, particularly vehicles and office machinery. Private construction was still in continuous construction. Overall, there were positive signs, such as the low rates of interest and the rising capacity utilization, which should encourage more investment in the near future.
--Development News Bulletin, National Economic and Social Development Board, Volume 14, No. 9 : September 1999--