The economy of Thailand can grow as much as 5% in 2017 according to a senior finance official.
The potential growth is attributed to the possible surge of private investments that the government set as a goal for next year. The finance permanent secretary, Somchai Sujjapongse, told the public that the government is looking into issuing government bonds worth an estimated 100 billion baht to be used as financing for provincial development and as a stimulus for economic growth. This move is anticipated to become a driving force strong enough to push private investment to a range of 200 to 300 billion baht by 2017.
This information was confirmed by the Deputy Prime Minister Somkid Jatusripitak who stated that the government is indeed slated to issue 100 billion baht worth of government savings bonds in the coming month of January. The said bonds would have a maturity date that would range from five to seven years and will be offered to public institutional investors. The decision would supposedly raise funds for the development of 18 clusters of provinces in the country. Moreover, this event will hopefully help offset the predicted poor global trade prospects for next year.
Mr Somchai further emphasized that private investment will be boosted by the active investments from state agencies and the government. He commented. “We expect Thailand’s economy could manage growth of 4-5% next year if the combined investment budgets from the government, state enterprises, the new government bonds to fund provincial development and ensuing private investment happen as predicted.”
Apisak Tantivorawong, Finance Minister of Thailand, also weighed in on the matter saying that this government bond issuance will serve as a catalyst for the country’s next economic step: Thailand 4.0 which is the newest economic model promoted by the government that will focus on the development of creativity, innovation, and technology in the country. Previous economic models were Thailand 1.0 which focused on the improvement of agriculture, Thailand 2.0 which gave importance to the light industry and low wage labor, and Thailand 3.0 which aimed to nurture the heavy industry and advanced machinery system.
Overall, the plans of Thailand to boost economic growth can prove to be effective if carried out successfully. By offering government bonds which hopes to be sourced from the 2018 fiscal budget, Thailand will be able to develop provinces that will help significantly in the overall economic health of the country.
One of the most watched nation in the world is the United States of America. Not only is it one of the most powerful nations in the world in terms of land area, population, and influence, it is also one of the powerhouses in the top economies that affect the global market.
That’s why it’s only natural that knowing the status of the US economy is a priority among traders and analyst. And to know the status of the economy, one must only look to these famously reliable indicators. Here are the seven best indicators of the US economy.
Gross Domestic Product
The Gross Domestic Product is one of the most famous indicators of economic health. It supplies the information about the total value of produced goods and services. This will give you a rough estimation of whether the economy has been growing or slowing. Some of the data that are taken into consideration in the computation of the GDP are government spending, consumer spending, foreign trade, and business investment.
One of the best indicators for any nation is the employment report. It shows the welfare of a country by indicating how many jobs were filled in and pinning down the unemployment rate. Naturally, the better the numbers are for the jobs report, the healthier the economy is. Likewise, the higher the unemployment, the worse it is for a country. More jobs means that more businesses are blooming, more money is circulated, and the more vigorous the economy is.
Another important indicator is the nation’s industrial production. A gauge of the output of manufactured goods of a country’s various industries indicate the health of economy by measuring its production power. More production means more demand and thus a better business for the country’s producers.
A report on residential sales is produced by the Department of Commerce monthly. Home sales is considered as an accurate depictor of economic health because it represents a major purchase for people. The more people that are able to afford a home means that the consumer sentiment is well into the green territory. A happy citizen means a happy economy.
It is essential that traders pay attention to the happenings in the economy. These indicators will paint them a big picture of how the US economy is faring in general. These are a big help in formulating trading strategies. That’s why research as much as you can and as thorough and win the market.
Economists are expected the Federal Reserve to change their language regarding monetary policy and let go of their previous pledge to keep interest rates low for a “considerable time.”
According to 68% of economists surveyed by Bloomberg News, the US central bank is likely to make use of the term “patient” when describing its intentions for monetary policy going forward. The Federal Open Market Committee, which meets starting today until tomorrow, is seen to hike up its interest rates in the middle of 2015.
Officials of the bank are currently discussing the timing of when to tighten its policies are expected to make use of favorable jobs data bringing them close to achieving the Fed’s goal despite falling prices of crude oil that are preventing inflation from picking up. In the US, 321,000 additional workers were hired in November, the highest number in nearly three years, while unemployment fell to 5.8% to hit its lowest in six years and approach the Federal Reserve’s target of between 5.2% and 5.5%.
59% of economists forecast that a drop in unemployment will be one of the factors emphasized when debates on rate increases begin, while 41% said that inflation lingering below the target level will be enough to delay the timing. The central bank has held its borrowing costs to near zero since December 2008 even after ending its final round of quantitative easing last October.
Committee members are expected to make an announcement and release updated economic data tomorrow afternoon which will be followed by a press conference led by Fed chair Janet Yellen.
The US economy is predicted by economists in a separate survey conducted by Bloomberg News to grow by 2.9% in 2015, the best rate in ten years.
Latest Purchasing Managers Index (PMI) results show that the manufacturing industries of countries in Europe and Asia performed below expectations during the past month to dampen growth outlook in the region. The PMI is an economic indicator that is usually done through a survey that assesses and monitors the activity level of factories in areas such as new orders and output. Scores above 50 indicate that the industry is expanding while those that fall under 50 indicate a contraction.
In the UK, the Markit/Cips PMI fell to its lowest level in 14 months of 52.5 to indicate a slowdown in the sector’s expansion in August. It was previously at 54.8 in July after the figure was revised down from the original report. The decline’s largest contributor was in the amount of new orders which dropped by the largest amount since April 2013 to 52.9 from the 56.8 in the previous month. Factories’ rate of hiring decreased as well to the slowest pace in over a year.
Markit’s senior economist Rob Dobson says that the results suggest that the UK is not immune from the various turmoil and uncertainties being faced by its neighbors such as the eurozone, its primary trading partner, which has been struggling for the past year.
PMI in the eurozone also suffered from a decrease in new orders partly due to the ongoing unrest between Russia and Ukraine. Markit’s August PMI for the monetary region was the lowest in a year at 50.7 to fall from July’s 51.8. Two of the eurozone’s largest economies both recorded a decline with German factory activity at the lowest in 11 months at 51.4 while a deeper contraction was present in France where the measure was at 46.9.
According to Dobson, the poor results could add pressure to the European Central Bank to introduce additional monetary stimulus such as quantitative easing to revive the stagnating economy.
Meanwhile, the final reading of HSBC’s August PMI for China ended up below its initial flash estimate at 50.2. Factory activity levels previously reached the highest in 18 months in July when it climbed up to 51.7. While it reveals that the Chinese economy is under downward pressure, the effects may be more muted due to expectations that the Beijing government will enact additional policy easing in the coming months.