UTCC: Thailand enters deflation

[Flashermac]

Bangkok Post

1 Jun 2009

 

 

Thailand is now going through the period of deflation but the situation is not worrying, according to an economic think tank's latest report.

 

"The country was technically experiencing deflation as indicated by the dwindling inflation in the past six months and the economic contraction in the first two quarters of 2009," University of the Thai Chamber of Commerce's Economic and Business Forecasting Centre director Thanawat Polvichai said on Wednesday.

 

The inflation rate in June dropped four per cent, he said.

 

However, the current situation should not be a concern because it was driven by the decreasing oil prices together with the government's short-term economic stimulus measures.

 

The deflation would hit some businesses such as the construction sector, he said.

 

The Centre also expected tourism revenue in 2009 to be worse than last year.

 

A study conducted from June 25 to 29 revealed that 60.5 per cent of business operators forecast that this year's tourism would be worse because of the global economic slump, lower spending power, the A(H1N1) flu outbreak and the volatile political situation.

 

The respondents believed it would take about six months for the tourism sector to recover, which would be around the first quarter of 2010.

 

This year the country is expected to see about 12 million to 13 million tourist arrivals with an estimated tourism revenue of 450 billion to 490 billion baht. The projected revenue is lower than last year by 10 to 15 per cent.

 

The respondents want the government to quickly address the A(H1N1) flu outbreak, organise roadshows to promote the country and raise liquidity in the tourism sector.

 

 

[Faustian]

"The Centre also expected tourism revenue in 2009 to be worse than last year."

 

Really? Ya think?

 

 

They're a bit clever them there folks at that there place, they be. Aye.

[shygye]

I guess the KP scam will boost tourist spending.