With demand for electricity forecast to increase by 7% annually over the next 20 years and fuel consumption also expected to rise sharply, Thailand is trying to diversify its energy mix, with renewables seen as a viable alternative. Thailand has some 160 renewable power plants in operation, with a combined installed capacity of 792 MW, and a further 180 projects with a total capacity of 840 MW under…
The International Monetary Fund (IMF) recently concluded its Article IV consultation with Thailand for 2008, and has published its preliminary recommendations for the Thai economy. Describing Thailand's economic fundamentals as "favourable", the Directors predicted a return to medium-term growth rates of around 6% "predicated on the assumption of a continued macroeconomic stability and higher productivity…
The International Monetary Fund (IMF) recently concluded its Article IV consultation with Thailand for 2008, and has published its preliminary recommendations for the Thai economy. Describing Thailand's economic fundamentals as "favourable", the Directors predicted a return to medium-term growth rates of around 6% "predicated on the assumption of a continued macroeconomic stability and higher productivity…
The country's central bank has raised interest rates in a bid to shore up the economy, stating it would continue to tighten monetary policy should inflation continue to rise. On July 16, The Bank of Thailand (BOT) hiked its benchmark interest rate by quarter of a percentage point to 3.5%, the first rise in two years. Further hikes are expected if the move does not have the intended effect of heading…
Thailand's tourism sector continues to grow steadily despite facing adversity. With oil prices and a slowdown putting a squeeze on Western wallets, Thailand is focussing on Chinese visitors, specifically targeting the wealthier segment, moving its tourism offerings up the value chain. According to preliminary figures from the Tourism Authority of Thailand (TAT), 14.46m "international tourists" (foreign…
Although Thailand’s first half outlook was marked by concerns, the second half looks stronger based on sound macroeconomic fundamentals. Thailand, like most of its South East Asian neighbours, has been hit by fears of an economic slowdown amid rising inflation, slowing global economic growth and tighter lending. Political uncertainty regarding the country’s new government, and a territorial dispute…
The Thai economy has come under severe strain in recent weeks amid heightened political tensions. Street protests and the occupation of government offices by demonstrators have shaken down the stock market and currency, and tourism revenues have been curtailed. The Thai stock exchange fell to a 12-month low in the week beginning September 1, dropping in four of the five business days. By Friday September…
Thailand's automotive sector continues to grow, benefiting from the country's competitive advantages and official incentives, thanks to a range of recent and forthcoming measures. The country is aiming to become a regional centre for vehicle manufacturing, while mutually reinforcing its automotive components industry. In 2003, the government launched a drive to establish Thailand as the region's leading…
The Thai government's announcement of a large spending scheme may help the economy push through tougher times ahead, though growth still seems likely to remain under pressure. On October 26, Thai Deputy Prime Minister Olarn Chaipravat pledged $35.78bn to stimulate growth and prevent an economic crisis. The package includes $13.2bn in lending to small-and-medium-sized enterprises (SMEs) and small…
Disturbed by domestic political turmoil and latterly the global economic downturn, Thailand has spent most of 2008 trying to maintain normal business and economic activities. While there have been silver linings in the clouds, the year has largely been characterised by a search for both political and economic equilibrium. Deep political divides boiled over in May, when mass street protests broke…
