Fiscal office to revise growth forecast
Business was still on a roll in March, the Fiscal Policy Office said yesterday, but warned that it would revise its economic growth forecast in May.
Direct income taxes collected last month rose 15.2 per cent from March 2005, compared to an 11.8-per-cent rise in February. This showed that companies can still turn a profit and workers are still finding jobs, said Naris Chaiyasoot, director-general of the office . Consumption tax receipt were 10.9-per-cent higher than in March 2005, compared to 11.7 per cent higher in February. Consumers are worried about rising oil prices and political uncertainty, making them hesitant to spend. Private investment also slowed, as measured by capital goods imports which rose by 7.3 per cent from a year earlier, off sharply from the pace of 21.7 per cent in February. Land-transaction tax collections rose 7.9 per cent in March, compared with 15 per cent last year, indicating a cooling real estate market. Exports were the main engine of growth in March, up 15.9 per cent to US$11.1 billion (Bt418 billion). This helped exports in the first quarter increase 17.3 per cent to $29.56 billion from the first three months of 2005. Imports in March grew by only 1.3 per cent to $10.8 billion from the same period last year, thanks to government efforts to cut down on imports of crude oil, steel and gold. Imports in the first quarter climbed 6.7 per cent to $30 billion. Naris said his office would wait until next month to reconsider its GDP projection of 4.5-5 per cent growth for this year, due to the time lag before the rising baht starts dragging down shipments abroad. Exports in the first quarter were driven by orders placed before the baht started strengthening. The outlook for the economy is not completely gloomy. The global economy is expected to grow by 4.9 per cent this year, up from 3.5 per cent last year. Other Asian nations are doing well. China's economy grew 10.2 per cent in the first quarter, Singapore's rose 9.1 per cent and South Korea's expanded by 6.3 per cent in the first quarter, Naris said. The recovery of tourism would also add to growth, as passenger traffic at Bangkok International Airport rose by 21 per cent in March to 830,000 visitors. Farm incomes also improved. The agriculture price index rose by 16.9 per cent in March, he said. Wichit Chaitrong The Nation
|
