Download Interest Rate

Presented to Ms Jennifer Tan by:
Chew Yu Heng Samuel 041737E
Jasmine Ho Jie Min 044710M
Lin Pei Jing 042881D
Siti 041338Q
• Economic condition and structure in both country
• Balance of trade
• Infrastructure of Australia and Thailand
• Tax policy in Australia and Thailand
• Comparison of interest rate between Australia and
Thaliand.
• Comparison of Thailand’s interest rate and inflation
rate.
• Real GDP
• GDP per capita
• Balance of Trade
• Unemployment rate
%
change
1996
1997
1998
1999
2000
2001
Australia
4.3
3.7
5.2
4.8
3.1
2.6
Thailand
5.90
-1.37
-10.51
4.43
4.64
1.81
The % change in real GDP for Australia has been
after 1998 to 2001.
On the other hand, the % change in real GDP for
Thailand is
since 1999 to 2001.
US$
2001
2002
2003
Australia
18317
20309
25547
Thailand
1836
1998
2238
Australia GDP capita
by US$ 7230 from 2001-2003
Thailand GDP capita
2003
by only US$ 402 from 2001-

Measurement Errors
 Ignores Income Distribution
 Exchange Rate Fluctuations
 Purchasing Power
%
9.00
8.00
7.00
6.00
Thailand
Australia
5.00
4.00
3.00
2.00
1.00
0.00
1996
1997
1998
Year
1999
2000
2001
Thailand unemployment rate:
from 1.5% in 1996 to 3.36% in 2001
Australia unemployment rate:
from 8.2% in 1996 to 6.7% in 2001
Australia(US$m)
2002
2003
Total exports
65033
70358
Total imports
72690
88618
Thailand(US$m)
2002
2003
Total exports
66799
75430
Total imports
63363
64564
Australia: Balance of Trade - deficit of US$ 7,657 million in 2002 and a of
deficit US$ 18,260 million in 2003.
Thailand: Balance of trade - surplus of US$ 3,436 million in 2002 and a
surplus of US$ 10,866 million in 2003.
• Telephone mainlines
• Computers & Internet
• Developments of the countries
per 1000 people
600
500
400
T hailand
300
Australia
200
100
0
1996
1997
1998
1999
2000
2001
year
Australia - From 1995 to 2001,
by 1.78%
Thailand - From 1995 to 2001,
by 55.86%
Australia
Thailand
 From 1995 to 2001, users have
from 500 ,000 to 7,200,000.
 From 1995-2001, users have
from 55,000 to 3,536,000
 ICT expenditure change is
36.77%
 Thailand’s % change have
by
6 times than that of Australia’s
users
 Thailand has developed its ICT
and in ICT expenditure by
6.43%
 Thailand is developing its
economy and uses IT vastly.
Australia
 2005-06: Efforts to make rail
freight more competitive.
 Extra funding provided to
upgrade roads linking
Melbourne, Sydney and
Brisbane.
 Greater private-sector
participation in
infrastructure development
will be encouraged.
Thailand
 Expansionary policy
 Government expenditure of
US$25 bn on health,
education, irrigation and
transport
 Focus of developing
transport systems will be on
Bangkok
 An investment budget of
(US$12bn) for projects to
expand the network from 44
km to around 290 km.
• Fiscal Policy
- Taxation of Australia and Thailand
• Comparison of interest rate
• Comparison of interest rate and core
inflation rate of Thailand.
Australia
Thailand
 Personal Income tax raises
to 47% cutting in at earnings
of around US$50,000 per
year
 25% in the personal
income tax exemption
(first Bt100,000 of taxable
income)
 Federal Govt collects a levy
of 1.5% of personal taxable
income
 Lower tax rate on 1st
Bt1m(US$25,000) in net
profits on small
businesses
 10% withholding tax on
income flowing overseas are
collected
 Companies sales under Bt
1.8m not be subjected to
value-added tax
Interest Rate (%)
9
8
7
6
5
Thailand
4
Australia
3
2
1
2002
2003
Thailand – Interest rate
Australia – Interest rate
Quarter
4th
Quarter
3rd
Quarter
2nd
Quarter
1st
Quarter
4th
Quarter
3rd
Quarter
2nd
Quarter
1st
Quarter
4th
0
2004
Year
from 6.5% in 2002 to 5.5% in 2004.
from 7.6% in 2002 to 7.8% in 2004.
Adapted from bank of Thailand
• Inflation rate from 5.6% in 1995 to 7.2% in 1998
and
to 0.9% in 1st Quarter of 2002.
 Inflation rate
cause cost of production to
• Interest rate from 13.9% in 1995 to 15.4% in
1997 and
to 7.0% in 1st Quarter of 2002.
 Interest rate
makes loans cheaper.
• Thailand’s economy is improving as there is a
Good balance of trade ( in surplus of US$
7,430 million from 2002 to 2003)
• Thailand’s infrastructure and facilities improving.
• Better tax policy in Thailand.
• Interest rate lower than Australia.
• Inflation rate is low