Economic Condition in the third quarter of 2008 by sectors
- Household expenditure expanded by 2.6 percent in the third quarter, the same rate as in first
The expansion of household spending mostly concentrated on durable goods that increased by 9.4 percent. Key commodity items were cars, motorcycles, household electrical appliances (namely washing machine, refrigerator and air conditioner etc.). Spending on semi-durable and services which expanded by 3.4 and 5.2 percent respectively. However, household spending on foods decreased by 0.3 percent due to the increase in food prices.
For the first 9 months, private expenditure grew by 2.6 percent, attributable to the expansion of expenditures on durable goods, semi-durable goods, foods and services of 10.2, 3.5, 1.0 and 1.9 percent respectively.
- Private investment: slowed down amid mounting production cost, weakening global economy and
Nevertheless, there were several favorable factors supporting private investment expansion, including the negative real interest rate, government investment supporting measures for community enterprises and small and medium-sized enterprises (SME), tax measures for stimulating investment and measures for enhancing competitiveness.(B)
Investment in machinery and equipment grew by 5.4 percent. Import of capital goods (at 2000 prices) rose by 17.5 percent, in particular, investment in electrical machinery, industrial machinery, and metal equipment continued to expand. Domestic machinery sales (at 2000 prices) increased by 2.2 percent in July to August. Whereas commercial car sale dropped by 25.9 percent.
Investment in private construction dropped by 1.9 percent, compared to 0.9 percent growth in the first half of 2008, due to the slowdown of commercial building and residential construction from 9.8 and 6.4 percent in previous quarter to 4.5 and 3.1 percent respectively. In addition, industrial plant construction nd other constructions sharply contracted by 14.4 and 17.8 percent respectively.
medium-sized enterprises comprising of personal income tax exemptions for individual and small and medium-
sized enterprises whose earning less than 1.2 million baht per year, corporate tax exemption for 150,000 aht
of initial profit (formerly pay 15 percent) for companies whose have registered capital not less than 5
million baht. (SMEs would be able to reduce cost by 22,500 baht.) (2) Tax measures for stimulating
investment and enhancing competitiveness were the higher rate of deductibility of machinery depreciation,
income tax exemption for energy-saving equipments, the full depreciation of computer software within 3
ccounting period, specific business tax reduction for sale of property from 3 percent to 0.1 percent and
fees reduction for the transfer and mortgage of property from 2 percent to 0.01 percent.
For the first 9 months, private investment grew by 4.8 percent. Investment in machinery and
equipment increased by 6.3 percent but investment in construction declined by 0.1 percent (classified
into .5, 1.4 and 0.8 percent expansion of commercial building construction, residential construction and
ndustrial plant construction respectively. Meanwhile other constructions dropped by 7.8 percent).
- Export growth remained solid but with a sign of slowdown in export volume. In the third quarter
of 2008, export continued to expand at a satisfactory rate both in terms of price and volume. Therefore, in
US dollar term, export value increased at a solid pace of an average 25.5 percent. The supporting factors
were the increase in world demand for agricultural commodities which contributed to agricultural prices in
the third quarter, the advanced orders in the second quarter from new and Asian markets. In the third
quarter, export price and volume increased by 15.0 percent and 9.1 percent respectively which resulted in
24.8 percent expansion of export value in baht term.
However, there was a clearer sign of slowing down in export, as indicated by decelerated rate of
olume expansion from an average rate of 14.1 percent in the first seven months to an average rate of 2.6
percent between August and September.
Export of Agriculture
Export 2007 2008
(%YOY) Year Q3 Q4 Q1 Q2 Q3 9M
Rice Value 34.2 16.9 59.4 108.1 156.0 134.2 134.5
Price 9.5 7.3 4.2 13.6 90.9 88.4 64.1
Quantity 22.7 7.7 53.1 82.7 35.3 23.4 44.7
Rubber Value 4.5 -6.4 17.8 33.6 30.5 47.1 37.6
Price 7.1 -7.2 27.0 33.8 26.9 43.8 34.7
Quantity -3.0 0.6 -7.4 0.0 2.9 2.4 1.7
Cassava Value 23.1 -1.1 13.0 13.5 20.0 23.3 18.3
Price 24.5 40.5 55.4 58.9 61.9 39.3 51.8
Quantity 3.8 -29.7 -27.2 -29.3 -25.5 -11.8 -24.3
Corn Value 48.6 296.4 -9.7 229.6 -6.6 201.4 150.9
Price -7.0 -41.4 37.9 15.0 186.3 27.2 85.3
Quantity 22.7 395.3 -34.4 181.1 -43.5 136.6 107.4
Source: Ministry of Commerce
(Continue to).../Agricultural commodity:..