Results 1 to 3 of 3
  1. #1
    Thailand Expat
    William's Avatar
    Join Date
    Jul 2005
    Last Online
    19-05-2013 @ 06:37 AM
    Location
    In jail
    Posts
    5,822

    FITCH: Our fragile economy

    Our fragile economy



    Thailand's economy, encumbered by political uncertainties and falling domestic demand, puts the nation among "the most vulnerable countries in Asia" to a decline in global economic growth, Fitch Ratings warned on Monday.
    "The growth of domestic demand is extremely low, and net trade is largely responsible for headline GDP growth. In this context, Thailand is among the most vulnerable countries in Asia to a reduction in global economic growth," said James McCormack, head of Asia Sovereigns for Fitch Ratings, an international rating agency.

    Thailand's economy has been driven by strong exports this year, which surged more than 18 per cent during the first six months, but started to slow in July.

    McCormack, addressing a conference in Bangkok on the Thai economy's prospects organized by Fitch Ratings (Thailand), added that Thailand's sovereign creditworthiness remained sound, and there are no immediate pressure on its sovereign ratings.

    Visit Tantisunthorn, secretary general of the Government Pension Fund, said "growth should pick up in 2008 once there is greater clarity on the political front."

    Thailand has suffered unprecedented political uncertainties since early last year when the Bangkok-based elite and middle-class started street protests calling for the resignation of elected premier Thaksin Shinawatra and his populist Thai Rak Thai (Thais Love Thais) Party.

    The discontent culminated with a military coup on September 19, 2006, that toppled Thaksin and ushered in an appointed interim government. A general election scheduled on December 23 is expected to return power to civilians and restore some semblance of normalcy.

    The political turmoil comes at a time when regional economies, stock markets and banks are being threatened by the US's subprime mortgage crisis.

    According to Fitch Rating's recent survey of Asian banks, the largest exposure to the subprime mortgage sector "relative to the investing bank's own equity capital" was at BankThai with 21 per cent of its own equity, followed by the Bank of China with 17 per cent.

    "Our conclusion that the direct impact of investments in the US subprime mortgage sector on Asian banks should be limited. However, Fitch is concerned that there may be indirect effects from providing liquidity to conduits, from losses to investors in banks' asset management arms, and from having to take valuation losses on marking to market non-subprime-related CDOs and other structured securities whose underlying assets remain sound but whose market value has fallen due to market illiquidity," said David Marshall, Head of Financial Institutions, Asia Pacific at Fitch Ratings.

    Bank of China's exposure to the subprime mortgage sector was estimated at 10 billion dollars compared with the much smaller BankThai's 50 million dollars, according to the Fitch survey. (dpa)


  2. #2
    Mid
    Mid is offline
    Thailand Expat
    Mid's Avatar
    Join Date
    Aug 2007
    Last Online
    @
    Posts
    1,413
    meanwhile ,

    from the rose coloured glasses brigade

    Thai exports to grow 13 pct in 2007 - government agency
    09.03.07, 5:27 AM ET

    BANGKOK (Thomson Financial) - Exports will likely grow 13 percent to 144.9 billion US dollars this year due to steady foreign demand, the National Economic and Social Development Board (NESDB) said.

    The estimate is above the government agency's earlier projection for growth of 12.4 percent.

    'Shipments have been better-than-expected, especially in terms of their volumes,' the NESDB's secretary general Ampon Kittampon told reporters.
    'Overseas shipments of automobiles and electronic goods have not declined. We are confident that the 13 percent growth target this year is achievable,' Ampon said.

    Exports of agricultural products in the seven months to July rose 16.5 percent from a year ago, well above the agency's estimate of 5.5 percent growth.

    While the finance ministry cut its full year export forecast last month due to slowing growth in July, the NESDB said Thailand's exports will remain strong due to robust foreign demand.

    The agency also kept its forecast for Thailand's gross domestic product growth at 4.0 to 4.5 percent this year.
    afp

  3. #3
    I am in Jail

    Join Date
    Aug 2007
    Last Online
    15-12-2012 @ 03:35 PM
    Posts
    5,908
    Well, GDP growth will be where I predicted it at 4%. Not enough to keep pace with Vietnam et al.

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •