Monday, August 1, 2016

Broad Money Rebounded On Accelerated Government Spending

Economic Research
01 August 2016

Economic Highlights

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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