The region's economic indicators picked up during the month, including tourism, private

consumption, and investment due to an improved agricultural sector.

The number of tourists rose sharply by 42.3 per cent to 233,788 in February, clearly reflecting a recovery to normal, said the central bank's monthly regional economic report.

But the increase was slower than the 110.5-per-cent rise in January.

However, rising tourism in the southern region was significantly higher than 18.7-per-cent growth in the number of the tourists in the entire country in February.

According to the report, private consumption also picked up because of high prices for agricultural products, particularly palm oil, which bolstered purchasing power.

Value-added tax - a consumption indicator - rose by 40.5 per cent, due mainly to a 16.8-per-cent rise in registered vehicles and higher goods prices.

Private investment also showed signs of improvement as seen by seven projects approved by the Board of Investment, compared with three in February 2005. Total investment capital was Bt440.8million in the month, increasing 93.8 per cent from the same period last year.

In addition, the number of companies registered at the Commerce Ministry increased by 22.7 per cent to 540. Construction area permitted in municipal zones rose by 2.1 per cent from February last year.

The report said the areas in the upper part of the region had been more attractive to investors than the lower southern provinces.

"High oil prices, increasing interest rates, labour shortages and political uncertainty are currently important factors affecting the region's private investment," said the report.

Lending growth in the region also rose by 21.2 per cent year on year to Bt260 billion in February, in line with accelerating investment.

However, the report said demand for loans had not increased much since the beginning of the year.

Moreover, unemployment was recorded at 9,792 cases in February, declining 11.4 per cent from last year. Of the total unemployment, 81.5 per cent was in the upper part of the region.

The southern region's exports grew by 31 per cent to US$733 million (Bt28 billion) in February, higher than the 28-per-cent increase in January. Most export sectors increased, except fishery products.

Import value was recorded at $264.7 million, growing 13.4 per cent from the same period last year due largely to 32.1-per-cent growth in machinery and equipment purchases.

Anoma Srisukkasem

The Nation