Thailand's hopes to escape recession dimmed by output fall
BANGKOK (REUTERS) - Thailand's economy may not easily pull out of recession, data on factory output suggests, even as a retreat by foreign investors puts further pressure on its financial markets.
The fourth straight month of contraction in manufacturing output has raised fresh concerns that a slew of economic data this week will show more economic slippage, including a widening current account deficit as exports and foreign investments slow.
The central bank's data for July on Friday is expected to show consumption and investment remain subdued and the current account is in deficit again after a US$3.8 billion (S$4.87 billion) gap in January-June.
Thailand's economy slipped into a mild recession in the second quarter and is grappling with faltering exports as investors position for the US Federal Reserve to taper monetary stimulus, which has hit emerging Asia hard.