Broad Money Rebounded On Accelerated Government Spending

Economic Research	01 August 2016
Thailand
Economic Highlights
Broad Money Rebounded On Accelerated Government Spending Thailand’s broad money (BM) growth rebounded in June, rising +4.3% y-o-y, from +3.7% the month before, boosted by a large surge of 40.3% y-o-y in government disbursement and a marginal uptick in private credit demand. Meanwhile, Thailand’s net foreign position grew at a slower pace of 18.2% y-o-y, compared to +20.1% the month before, capping some of the upside. In aggregate, BM expanded 3.9% y-o-y in 1H. However, that figure is expected to moderate to 3.5% in 2H, as increased government spending will unlikely be sufficient to completely mitigate the demand deficit caused by the MRT delays. Economist:  Ng Kee Chou  | +603 9280 2179
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