Local consumption key to economic lift

Local consumption key to economic lift
Bangkok Post (12 October 2007)

Building up local consumption could be key to driving the economy next year since exports are unlikely to perform as well, according to Dusit Nontanakorn, the vice-chairman of the Thai Chamber of Commerce. Since the new government and its ministers would take time to outline policies and adjust to running the country, it was vital for the private sector to help stimulate the economy for at least the first half of next year, he said at a press briefing yesterday. Mr Dusit said the chamber would propose plans and an urgent economic agenda for the new administration next month. The new government should not expect high exports, as the dollar value grew 16.4% year-on-year to $95.61 billion in the year's first nine months. In a related development, the University of the Thai Chamber of Commerce reported that the September consumer confidence index improved slightly after the general election date was confirmed for Dec 23. Sauwanee Thairungroj, vice-president for research at the University of the Thai Chamber of Commerce, said last month's CCI rose to 75.8 from 75.7 in August, although concerns about rising living costs stemmed largely from more expensive fuel and consumer product prices. The confidence index in the overall economy fell to 69.2 last month from 69.5 in August. The job opportunity index declined to 87.8 from 87.1. Only the index on future income rose a bit to 87.8, from 87.1 a month earlier, she noted. The chamber said the economy in the fourth quarter would remain slow and the government should speed up its budget disbursements, including the 15 billion baht set aside to improve the quality of life. The coming election, in which politicians and their supporters are expected spend between 20 billion and 30 billion baht, should boost the economy in the last quarter as well, she said.