02.04.09 Economic crisis begins to bite into business sector
Source: TNA
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)
| 
