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Thailand faces inflation, but still attractive |
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Dramatic increases in international food and energy prices and sustained strong economic growth have fueled inflationary pressures in many countries around the world. The price of just about everything is going up. People around the world have already seen transportation and food prices rise dramatically: The European Community has experienced in May the highest inflation rate of 3.6 per cent since the EURO implementation in 1999, according to the European Central Bank. (Focus Online, http://www.focus.de/finanzen/news/inflation-ezb-signalisiert-zinserhoehung_aid_306718.html, 05.06.2008) In the USA, inflation increased to 4.1 per cent, the highest since 1990. (Der Tagesspiegel, http://www.tagesspiegel.de/wirtschaft/USA-Inflation;art271,2457447, 13.06.2008) China's inflation hit 8.7 per cent in February, the highest rate in over 11 years, the Chinese National Statistics Bureau said. (Focus Online, http://www.focus.de/finanzen/news/ china_aid_264707.html, 11.03.2008) Within ASEAN, Indonesia's inflation reached a high in May to 10.4 per cent. Philippines’ was at 9.6 per cent in May, up from 8.3 per cent in April, Malaysia’s was at 10.38 per cent in May. Among the worst hit is Vietnam where inflation is more than 25 per cent. (Taipei Time, http://www.taipeitimes.com/News/worldbiz/archives/2008/06/16/2003414869 , 16.06.2008). In Thailand, inflation accelerated to 7.6 per cent, nearly a 10-year high in May on soaring oil and food prices. The yearly increase was the highest since August 1998. For the first five months, the annual inflation rate was 5.8 per cent. (Bangkok Post, 03.06.2008)
Compared within Southeast Asia, Thailand’s inflation belongs to the low
level. However, Thailand takes action to deal with inflation. The Thai
government was intent on ensuring that economic growth this year will
outpace inflation. New measures including support for E85 gasohol,
enhancement of renewable energy promotion as well as tightening monetary
policy have been implemented to help the public cope with rising food
and energy prices. All of these measures will further on secure Thailand
as attractive Land of Investment with advantageous
and
business-friendly
investment environment. |
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BOI Frankfurt, June 2008 |
