“The banking system’s non-performing loans increased in the third quarter in line with the economic slowdown, according to the Bank of Thailand. The NPLs, after provisions, totalled 260.4 billion baht, or 4.43% of total loans in the third quarter, slightly up from 254.2 billion baht, or 4.40%, in the second quarter.” (Bangkok Post)
Meanwhile, the principle of reality is hurting. The Fiscal Policy Office announces that “Thailand’s economic forecast will be revised on November 23, when the recent oil price hikes as well as global economic conditions will be taken into account“.
He said that “Thailand’s gross domestic product will be slashed 0.2 percentage point for every US$1 increase in the Dubai crude oil price. Meanwhile, the $1 increase will also push up inflation by 0.3 percentage point.” (Nation)
Last week, on october 19, the Bank Of Thailand has actually INCREASED its GDP forecast (Bangkok Post) , from 4 /5 % to 4,3 / 4,8 % !
It’s funny how things can change in one week…
To the credit of BOT (sometimes I’m too harsh with them), they said that “the new forecast was based on an assumption that Dubai oil prices would average $68 per barrel in the fourth quarter and $64.6 per barrel for 2007.“
Which might be actually totally… irrealist, as people start to understand… Oil is expensive today. It will remain expensive on whole Q4 (it’s the winter in US and Europe).
So long BOT…