After the government declared a state of emergency, investors in the Stock Exchange of Thailand fled quickly as Thai stocks fell 2.33%. Experts say that the hit that Thai stocks took could have been much worse. The Stock Exchange of Thailand closed at 659.51, down 15.71.

With the expectation of increasing economic problems in the second half, Finance Minister Surapong Suebwonglee promised to focus on pro-growth measures for the next six months. The government will aim to raise consumers' purchasing power, increase exports, and ease liquidity constraints for small to medium-sized enterprises. Furthermore, the government is ready to quicken disbursements for the country's megaprojects.

Thailand's healthy economic growth this year is due mostly to an increase in exports and high farm prices. Thailand grew 5.9% in the first half of the year while many nations faced recession. Prices for rice, cassava, natural rubber, palm oil, and sugarcane increased, allowing incomes in the agricultural sector to soar.

It is expected that within a few years, the company will be an international standard organization with the acquisition of 200 million baht worth insurance business of the Dumnernchanvanich Group. In order to improve the operation of APFII, the company also invited a professional who was well accepted among the insurance circle, Mr. Worasak Kriangkomol, former Managing Director of Liberty Insurance Co. Ltd., to be the company’s Managing Director. Despite fierce competition in today’s insurance business, the company is still confident in its ability to compete. More importantly, when there are more companies with problems, the consumers have to choose more.

Construction budgets on Thailand's megaprojects could be revised if oil prices continue to fall. With decreasing demand from the United States, oil prices may fall to $90 per barrel in the near future. As of yesterday, oil was trading at $116 per barrel. The megaproject plans include 1.7 trillion baht worth of new infrastructure projects in health care, education, power, mass transit, and irrigation.

Based on a forecast for economic growth of 5%, the Securities Analysts Association projected a 21.3% earnings growth by listed companies this year. The baht should trade at 33.6 to the dollar by the end of 2008. Inflation is projected to average 7.3% this year.

In the upcoming months, the United Overseas Bank plans to slow lending activity. This will push down the loan-to-deposit ratio which is around 90 to 95% for large banks. The ratio should drop to 85 to 90% by the end of the year.

Due primarily to selloffs of local assets by foreign investors, net capital flows was in the red in June for the first time in six months. June saw not only the deficit of $3.8 billion, but also a slightly weakened baht. Economic growth will likely be hindered for the rest of the year due to high oil prices, inflation, and the United States subprime mortgage crisis.

With oil prices surging, the Thai government has set a goal of cutting energy consumption in the transport sector by 14% by 2011. The government is aiming to decrease the amount of oil used from 22 million tonnes of oil equivalent a year to 19 million. The Energy Ministry has set aside 9.5 million baht to fund initiatives that will increase energy efficiency. Business operators have already been encouraged to conserve energy by using "backhaul logistics," which means getting the maximum use out of their transport vehicles.

Due to an increased number of shipments of agriculture and food products, Thailand's total exports grew 23.1% in the first half. Thai exports increased 27.4% from a year ago reaching $16.268 billion. Rice, rubber, and chicken exports all increased significantly. Indochina, the Middle East, and Africa have all increased their imports of Thai products.