Posted on 23 Apr 2009
The Federation of Thai Industries (FTI) expects exports to improve gradually through the second half of the year as major world markets start their recovery.
It also sees signs of improving domestic demand following the distribution last month of 2,000-baht government cheques to 9 million low-income people.
''Those large economies such as the
The electrical and electronics industry has seen improving exports, he said, followed by processed food producers.
''If we get more orders in the third quarter, when customers generally stock products for the New Year, yearly export figures may be down by only single digits compared to last year. That will be much better than estimated earlier,'' he said.
The dollar value of
The FTI reported yesterday its industrial confidence index in March edged up to 69.4 from 63 in February, on orders for Songkran. ''Things are on the rise for business operators as the three-month
[forward-looking] forecast has improved from 73 in February to 75.1,'' he said.
Improving sentiment also reflected the 2,000-baht government handouts and increasing export orders in some sectors, especially electronics.
Refinery and petrochemical operators are also more optimistic as margins are up while crude prices, while low, have been less volatile.
But operators want political stability and worry the global economy may take longer to recover. They are also concerned about increasing crude prices.
''Factors such as exchange and interest rate are not worrying them but businesses are calling for more flexible lending rules to improve their cashflow,'' said Mr Santi.
Cuts in raw material import tax and corporate income tax to be on par with neighbours would also help, he added.
