BANGKOK, April 2 (TNA) – The economic crisis has begun to clearly bite into Thailand’s business sector as is witnessed by the swift decline in listed companies’ profitability and debt repayment prospects due to the weakening of local and overseas demand, according to the Bank of Thailand (BoT).
Amara Sripayak, senior director of the central bank’s Local Economy Division, said that wholesale and retail trade in January dropped by 8.5 per cent and 7 per cent respectively from the same month last year because of the weakening of production and construction activities.
In addition, confidence among entrepreneurs and consumers remained low due to increased unemployment and global economic uncertainties.
The overall wholesale trade in almost all categories, especially the sale of building materials, metals and agricultural supplies had also fallen from the same month the year before.
The overall retail trade had dropped, reflecting a reduction of consumer spending although product prices had declined, she said.
A group of products with increased sales include the retail trade in supermarkets with constant sales promotions.
Total production in the business sector had dropped swiftly due to a weakening of local and overseas demands, she said.
It reflected a fall in profitability of the business sector and performance of most listed companies on the Stock Exchange of Thailand (SET).
An increase in the economic risk factor as a result of economic weakness led to a continued rise in loan defaults from the previous quarter.
It resulted in higher borrowing costs of the business sector in the banking system or in the financial market. (TNA)
Business News : Last Update : 08:56:23 2 April 2009 (GMT+7:00)
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