Eastern region stands out for growth indicators

The indicators for November suggest higher economic growth in the Eastern region, said Pornchai Theeravej, finance and economics adviser to the Fiscal Policy Office (FPO), yesterday. 
The collection of value-added tax (VAT) rose 6.3 per cent year on year, indicating high spending among consumers in the region, especially in Prachinburi, Sa Kaeo and Trat provinces. Sales of cars and motorcycles increased 39.7 per cent and 22.8 per cent, respectively. New registrations of pickup light truck and trucks increased 46.2 per cent and 15.5 per cent, respectively. 
On industrial activity, investment in factories totalled Bt 4.9 billion, a rise of 52 per cent from the same month last year. Most these outlays were in Prachinburi and Rayong. Rayong is part of the Eastern Economic Corridor project that is targeted for investments inflows and which was initiated by the current government. 
The region also received more income from a rising number of tourists. An investment confidence index rose for fourth consecutive months to 101. 
In southern Thailand, VAT collection rose 4.6 per cent, due to high spending in Phuket, Trang, Phang Nga and Krabi. The region’s economy was driven by a stream of income from the tourism industry. New registrations of car and motorcycles rose 83 per cent and 13 per cent, respectively. Private investment also showed signs of an increase, indicated by new registrations of pickups and trucks rising 42 per cent and 28 per cent, respectively. The number of visitors and income from them rose 6 per cent and 13 per cent, respectively, in October.
In the North, VAT collections increased 4.3 per cent, due to high consumer spending in Chiang Mai, Chaing Rai and Lamphun. New car and motorcycle registrations rose 79 per cent and 7.4 per cent, respectively. Registrations of pickups and trucks increased 19 per cent and 13 per cent, respectively. The value of new investment in factories totalled Bt2 billion last month. The tourism industry also contributed to economic activity in the Northern provinces. 
 Greater Bangkok also experienced economic vibrancy, as car and motorcycle sales rose 70 per cent and 14 per cent, receptively. 
In the Northeast , the key indicators also pointed to economic expansion. VAT collections increased 1.4 per cent year on year. Sales of car and motorcycles rose 44 and 3 per cent, respectively. Sales of pickup light trucks and trucks jumped 15 and 6 per cent, respectively. The number of tourists and the income received from them rose 3 per cent and 7 per cent respectively, in October. 
For the whole country, indicators showed sustained economic expansion in November, says Finance Ministry.
Economic growth appears to have continued through November, said Pornchai, pointing to the healthy state of the indicators. 
Car sale increased for the 11th consecutive month, with November sales growing at 34.9 per cent year on year, and people in regional areas bought more cars and motorcycles, he said. Also, consumers were more confident of their future income, said Pornchai. The collection of the value-added tax increased 1.6 per cent, suggesting consumer spending continued.
Other positive indicators included an increase of 6.4 per cent in cement sales year on year, the highest growth rate this year. Also, the construction materials price index rose 3.6 per cent. Tourist arrivals rose 23.2 per cent. Exports rose 13.4 per cent in nine consecutive months of growth, while the import of capital goods went up 11.1 per cent. These indicators suggest further increases in private investment. The office expects economic growth will meet its forecast of 3.8 per cent this year.
On the other hand, the real income of farmers contracted by 6 per cent year on year, according to the FPO monthly economic report.
Separately, the Office of Industrial Economics reported the Industrial Production Index in November rose to 4.2 per cent to 116.8, highest growth in past eight months. 
Meanwhile NIDA University’s Master of Public and Private Management Programme forecast an economic growth rate of between 4 and 4.5 per cent for next year. It also estimates the benchmark Stock of Thailand Index will trade between 1,875 and 1,925 points in 2018.