Category: ARTICLE

The BOT announced that still following up on the THB situation

          From the report on 28 September 2022, the monetary committee voted to raise the interest rate by 0.25%, increasing from 0.75% to 1.00%. The factor driving to increase in interest rate in Thailand is the FED announcement to raise the interest rate by 0.75%, reaching 3.25%, this cause-effect USD to be appreciated and other currencies to depreciate.           Nonetheless, BOT governor, Sethaput Suthiwartnarueput, told reporters that the Bank of Thailand has been following up on the situation of the Thai Baht, and promptly acted on excessive moves, meanwhile they didn’t apply the policy to regulate the exchange rate and Thailand has learned from the economic crisis in 1997.           Moreover, this year’s Thai economy will continue to recover from consumers and tourists, for the export will be affected by the economy’s world recession. The bank of Thailand forecasts economic growth in 2022 to be 3.3%, and in 2023 to grow at 3.8%, which means the economy of Thailand will be recovered slowly more than expected. Meanwhile, the

Thailand’s August inflation hits 14-year high on the back of high energy cost, BoT expects gradual economic recovery

          Thailand’s headline inflation hits a 14-year high in August when it rose by as much as 7.86% year-on-year, the Ministry of Commerce announced. “Inflation has reached its peak this year…and the main driver of inflation is still energy prices which increased by 30.5%,” said Ronarong Phoolpipat, director-general of the ministry’s Trade Policy and Strategy Office.          “Even though the prices of gasoline and gasohol have decreased when compared to a month earlier, the price of diesel, cooking gas, and electricity have all gone up while the prices of services such as public transportation and education have also increased,” he said.           The headline consumer price index (CPI) was at 107.46 points in August, up 7.86% year-on-year and increased by 0.05% when compared to July. The CPI was at 4.7%, 7.1%, 7.66%, and 7.61% in April, May, June, and July, respectively.            The inflation rate in August was the highest since the index rose by 9.2% year-on-year in July 2008, the same year as the

Foreign Direct Investment (FDI)

          Foreign Direct Investment (FDI) is a scheme used when any individual or company holds at least a 10% share of any foreign company. It is also described that the investment made by any individual or firm in countries apart from the country of their origin. FDIs are distinct from portfolio investments as they involve a long-term relationship and control of the investee’s company. Multinational corporations (MNCs) and multinational enterprises (MNEs) are two common names for foreign direct investors.           The main purpose of FDIs is to gain new markets and access to natural resources, labor, and technology. By investing directly in another country, companies are able to avoid the tariffs and other trade barriers between their home country and the target market. Additionally, FDI allows companies to benefit from the lower costs associated with production in developing countries. FDIs can be made through various mechanisms, such as setting up a new subsidiary or joint venture, acquiring an existing company, or investing in real estate.           In accordance with

The continuously risen Thai Consumer Confidence

         According to the report from Mr.Thanavath Phonvichai, the president of the Center for Economic and Business Forecasting, It was mentioned that on August 2022, Thai consumer confidence rose for a third straight month reaching a seven-month high. It reached 43.7 in August from 42.4 in the previous month, This will recover Thai economic growth at 3% – 3.5% this year.           The main factors that have pushed the Thai economy to grow up as follows,  Released government support measures Easing of Covid-19 measure Promoting tourism sector Supporting night entertainment (added a monthly 50 billion baht to the economy)           Especially, in Q4 if foreign arrivals travel in Thailand at least 1 million person/month, it would earn an income of around 50 billion. Also, the Ministry of Labour will adjust wages to rise on average at 5%, which will be effect officially on 1st October 2022, this factor will cause people more income and drive the Thai economy. Hence, the Thai economy in Q4 will rise to 3.5% –

Japan Bounces Back to Economic Growth as Coronavirus Fears Recede

     A public weary of virus precautions pushed up consumption of goods and services, but the longer-term picture is uncertain as the global economy weakens. Shoppers have poured back onto Tokyo’s streets in recent months.      TOKYO — Restaurants are full. Malls are teeming. People are traveling. And Japan’s economy has begun to grow again as consumers, fatigued from more than two years of the pandemic, moved away from precautions that have kept coronavirus infections at among the lowest levels of any wealthy country.      Lockdowns in China, soaring inflation, and brutally high energy prices could not suppress Japan’s economic expansion as domestic consumption of goods and services shot up in the second three months of the year. The country’s economy, the third largest after the United States and China, grew at an annualized rate of 2.2 percent during that period, government data showed on Monday. The second-quarter result followed the growth of 0 percent — revised from an initial reading of a 1 percent decline — during the first three months of the year when consumers

Impact of savings to the economy

What is savings?           Saving is income not spent or deferred consumption. Methods of saving include putting money aside in, for example, a deposit account, a pension account, an investment fund, or cash. Consumer spending is what households spend to fulfill everyday needs. This private consumption includes both goods and services. Saving is closely related to physical investment, in that the former provides a source of funds for the latter.           Economics is divided on the role of savings. Many economists believe that saving is a personal virtue but social vice. This is because if all the people start saving, the expenditure will go down. Since the current system measures GDP and economic growth based on expenditure, a higher savings rate makes it appear like the economy is not growing. In fact, it may appear like the economy is about to enter a recession. On the other hand, many economists do acknowledge that this GDP-based view of savings is incorrect. They refer to unanimity in all of economic history. No country in

Terrible winter in the EU with ENERGY CRISIS extreme

          Belgium’s energy minister mentioned that the EU countries will face 5-10 terrible winters which that means the EU countries would face a lack of energy for decades if the relevant organization has done nothing to reduce gas prices.           Since Russia reduced the export volume of energy to the EU, this causes affects the demand to use gas and fuel in the EU over supplies, hence the energy prices are higher and the EU citizen face electricity bills that are high and it seems will not decrease.           However, Russia is the biggest supplier that exports energy worldwide, especially the EU countries, last year Russia supplied the EU which reach 40% of its gas. Since Russia invaded Ukraine, and the EU which supports Ukraine sanctioned the finances of Russia accordingly, Russia responded by reducing the export of energy to the EU.           The EU has implemented measures on energy-saving and purchasing gas from other alternative suppliers and because of these measures, Germany would

Recession in the U.S is entering

        The U.S. economy contracted for the second straight quarter from April to June, hitting a widely accepted rule of thumb for a recession, the Bureau of Economic Analysis reported Thursday.           Gross domestic product fell 0.9% at an annualized pace for the period, according to the advance estimate. That follows a 1.6% decline in the first quarter and was worse than the Dow Jones estimate for a gain of 0.3%.         Officially, the National Bureau of Economic Research declares recessions and expansions, and likely won’t make a judgment on the period in question for months if not longer. But a second straight negative GDP reading meets a long-held basic view of recession, despite the unusual circumstances of the decline and regardless of what the NBER decides. GDP is the broadest measure of the economy and encompasses the total level of goods and services produced during the period. Quarterly change in U.S. gross domestic product  “We’re not in recession, but it’s clear the economy’s growth is slowing,” said Mark Zandi,

Payment Gateway

          Nowadays, Payment gateways have been used to accept purchases from customers, potentially growing the merchant business. It is a tool used by merchants to receive payments from customers which is cloud-based and it helps merchants receive online payments from customers. Moreover, a brick-and-mortar retail store’s payment gateway is a point-of-sale (POS) system. Globalization drives businesses to transact more frequently across borders. Consumers are also transacting more globally buying from foreign eCommerce sites and traveling, living, and working abroad. E-commerce and other online transactions are growing even more rapidly since the beginning of the COVID-19 pandemic, with particularly strong trends across many emerging markets. What is a payment gateway?           A payment gateway is a technology used by merchants to accept any payment method from customers provided by an e-commerce application service provider to which a merchant’s website or a physical point-of-sale POS system is connected. A payment gateway often connects several acquiring banks and payment methods under one system. It transmits transaction information virtually through web payment services and APIs or

The inflation rate in the UK dramatically hit a new 40-year high record

          The Office for National Statistics (ONS) published the data on Wednesday 17 August 2022 that the inflation in the UK was rising above 10% for the first time since 1982, it was hitting the new highest record of 10.1% when compared with the same month last year, up from 9.4% in June.           The main factor driving inflation in the UK hike is the pricing of foods and non-alcoholic drinks, the price of bread, cereals, milk, cheese, eggs, vegetables, meats, and chocolates.           However, the Bank of England adjusted the interest rate 6 times continuously in order to control inflation, at the beginning of August the bank of England adjusted the inflation rate rose to 0.50%, and it was hiked for 27 years since 1995.           The inflation in the UK is forecasted to go even higher at the end of this year, driven by electricity prices and gas prices, because at the end of the year is the winter season, and would