What happened this week 25/08 – 29/09
Thailand
- Gloomy export figures for July may force revised growth target – The Commerce Ministry will likely be forced to slash its export-growth target for this year from 3.5% to 1.9% after July’s shipments continued to slide by 0.8% YoY to US$18.89bn. (The Nation, 28/08/14)
- Mega-projects ‘to boost growth’ – The junta’s economic czar, Air Chief Marshal Prajin Juntong, yesterday said the government’s plans to allocate Bt2.4trn for infrastructure investment would lead to the creation of long-term, sustainable growth of the economy. (The Nation, 28/08/14)
- BoT more optimistic — The central bank is now more optimistic about economic growth this year, believing it has high potential to reach 2%, up from earlier projections of 1.5%. (Bangkok Post, 28/08/14)
- NCPO keeps energy price pledge – The military government has fulfilled one of its promises by moving quickly to restructure energy prices, resulting in a sharp reduction in the retail prices of gasohol and petrol. The change in contributions to the Oil Fund will result in a per-litre decrease of Bt3.89 for normal petrol, Bt2.13 for gasohol 95, Bt1.70 for gasohol 91 and Bt1 for E20 gasohol. (Bangkok Post, 29/08/14)
- Prayuth talks up SEZs to Japanese investors – Japanese companies should move their production bases to Thailand’s special economic zones (SEZs), says Prime Minister Prayuth Chanocha. Japanese business operators should consider opening factories in special economic zones in border areas, which the council promotes, in preparation for the launch of the ASEAN Economic Community next year, the National Council for Peace and Order (NCPO) leader said yesterday. (Bangkok Post, 29/08/14)
- FPO sees more positive signs — The Fiscal Policy Office reports more positive signs in the Thai economy from private consumption and private investment with a clear improvement in the Consumer Confidence Index following the easing political situation. However, exports have not yet recovered. The FPO maintain its current export growth estimate of 1.5% and GDP growth of 2% this year. It says it has not proposed any stimulus measures to the NCPO yet. (ASTV Manager, 29/08/14)
- Unemployment up in Q2 – Thailand’s unemployment rate rose in the second quarter as the economic slowdown and widespread drought took their toll. (Bangkok Post, 26/08/14)
- Debt creation rising, but at a slowing rate — The NESDB reports that in 2Q14, Bt3.33trn of debt was created. This rose 8.8% QoQ but the rate of growth was slower than previously. This reflects negatively on domestic consumption. (Post Today, 26/08/14)
Globally
- U.S. economy grows 4.2% in Q2 — The U.S. economy showed better-than-expected shape in the second quarter, lifted by stronger growth of exports and private investment, according to
- the revised data released by the Commerce Department on Thursday. The real gross domestic product (GDP) grew at an annual pace of 4.2% in the second quarter, higher than the initial estimate of 4%. (Xinhua, 28/08/14)
- The National Association of Realtors (NAR) said its Pending Home Sales index, which leads home resales by a month or two, jumped 3.3% to an 11-month high in July, at 105.9. It was the latest sign the housing market recovery was back on track after faltering in the second half of 2013. (Reuters, 28/08/14)
- U.S. initial jobless claims fall as economy rebounds – The number of Americans initially applying for unemployment aid last week decreased as the economy rebounded strongly in the second quarter. In the week ending Aug. 23, the advance figure of seasonally adjusted initial claims for jobless benefits fell to 298,000, about 1,000 less than the revised level of the previous week, the U.S. Labor Department said on Thursday. (Xinhua, 28/08/14)
- German CPI: The Federal Statistical Office (Destatis) of Germany revealed that CPI held steady at 0.8% YoY in August, putting more pressure on the European Central Bank to enact stimulus measures to fend off inflation at the 0% range – which is considered low and can have a negative impact on the eurozone economy. (IQ Biz, 28/08/14)
blackjack
where are these SEZ areas located?
Tony
In your Thailand Segment, you mention ASEAN integration starting next year. I would like to take it a step further and ask; Do you know of any stock sectors in the SET and Mai that could be impacted or will face difficulties with this integration?
Tony