Thai July exports rise but Covid-19 curbs hit activity

Government expenditure increased 18% in July from a year earlier while exports rose 21.7% year-on-year.

BANGKOK: Thailand’s economy in July was increasingly impacted by the country’s worst Covid-19 outbreak and tighter restrictions that extended into August, but fiscal policy and exports lent some support, the central bank said yesterday.

The nation’s containment measures were imposed in July and August in Bangkok and other areas which account for about 80% of gross domestic product.

But some will be eased from today to help a flagging economy, as new infections drop.

In July, the impact of the Covid-19 outbreak on the Thai economy became more apparent with weaker consumption due to the curbs, the Bank of Thailand (BoT) said in a statement.

Economic activity in August faced the same pressures as well as supply disruption caused by factors such as a labour shortage and outbreaks at factories, senior director Chayawadee Chai-Anant told a briefing.

“While the relaxation of curbs from tomorrow (today) allows activity to resume, in terms of people spending, we have to wait and see how much confidence will improve,” she said.

The easing, however, was factored into the BoT’s baseline GDP growth forecast of 0.7% this year, she said.

The BoT is due to offer its new economic forecasts on Sept 29 when it also reviews interest rates.

In July, private consumption fell 5.3% from the previous month and private investment dropped 3.8%, while tourism had yet to recover.

Government expenditure increased 18% in July from a year earlier while exports rose 21.7% year-on-year. — Reuters

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

economy , Thailand , exports , expenditure ,


Next In Business News

Second phase of London's Battersea Power Station to be opened to public next year
CPO futures seen trading higher next week on improved sentiment, may hit RM5,050
US to lift restrictions Nov 8 for vaccinated foreign travelers
China aluminium firm Zhongwang flags 'severe difficulties' at subsidiaries
Toyota cuts November output, after supplies slowed from Malaysia and Vietnam
Oil prices rise to three-year high on back of supply deficit forecasts
World stocks notch best day in 5 months
DNB gets Malaysia ready for 5G
Telcos post-5G rollout
Short Position - Listed companies, healthcare valuations, demographic dividend

Others Also Read