In terms of market destination, in the past, our export performance relied heavily on the market conditions of the G3 countries, with our export growth usually deteriorating when these economies were in recessions. However, the situation has changed in recent years with intra-regional trade quickly gaining a more significant role. With this, our export has enjoyed greater market access in China and other East Asian countries. The intensification of intra-regional trade, which is likely to continue, has made Thailand’s export cycles less dependent on the G3 economies, and Thailand’s strong export performance over the past year amid G3 economic slowdown is just a reflection of our more well-balanced export market base. On this note, I would like to emphasize that the EU is indeed an important export market for Thailand, and export to the United Kingdom in particular comprises around 3-4 percent of Thailand’s total export value. The good news is that even with keener competition in the world market, Thailand’s export growth to the EU remains quite high at around 18 percent in the first half of this year, thanks in part to the contribution of chambers of commerce like yours. Regarding export of services, we are all aware that the Thai tourism industry was hit hard by the outbreak of SARS in the second quarter. The number of foreign tourists in May dropped by as much as 50 percent year-on-year, a magnitude that dwarfed the impact of 911 by comparison.
On this, the contribution from the organization and people like yourself has played no small part, and I would like very much to use this opportunity to acknowledge this. Going forward, the challenge is to translate the current momentum into a sustainable growth well into the medium term. This, as I noted earlier, would require a continued fostering of the export and consumption expansion so that capacity utilization could increase to the point that private sector capital investment would gain an even firmer footing. During this period, monetary policy must remain supportive of the growth process. At the same time, we will continue to keep watchful eyes on certain areas of the economy that may expand too fast and impose risks to economic and financial stability. Should some of these excesses occur, however, the Bank of Thailand will make sure that appropriate measures will be employed to prevent and mitigate such risks. Ladies and gentlemen, Thank you for your attention. I think I would just stop now to give time for questions. I’ll do my best to answer any questions you may have. Thank you. BIS Review 46/2003  5