Strong growth in consumption and reconstruction activity from last year's flooding buoyed economic growth in Q2. In the second quarter, GDP expanded 4.2% over the same period last year, which marked an acceleration compared to the revised 0.4% increased tallied in the first quarter (previously reported: +0.3% year-on-year) and overshot market expectations, which had GDP growing 3.2%. The acceleration observed in the second quarter was primarily underpinned by solid growth in domestic demand. Total consumption expanded 5.4% annually in Q2 (Q1: +2.4% yoy), buttressed by healthy growth in both private and government consumption, which increased 5.3% and 5.6% respectively. In addition, gross fixed investment accelerated from a 5.2% increase in the first quarter to a 10.2% expansion in the April-June period. On the external side of the economy, exports of good and services bounced back and increased 0.9% in Q2, contrasting the 3.2% drop recorded in Q1. Meanwhile, imports picked up to 8.5% in Q2, stronger than the 4.3% expansion observed in Q1. As a result, the net contribution from the external sector to overall economic growth improved slightly from minus 4.7 percentage points in the first quarter to minus 4.4 percentage points in the three-month period to June. On a quarter-on-quarter basis, GDP grew 3.3% in the second quarter in seasonally adjusted terms, which was below the 10.8% expansion observed in the previous period.
Economic growth accelerates more than expected in Q2
August 20, 2012
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Thailand GDP Chart
Note: Year-on-year changes of GDP in %.
Source: Office of the National Economic and Social Development Board (NESDB) and FocusEconomics Consensus Forecast.
Thailand Economic News
October 17, 2016
On 13 October, Thailand’s beloved King Bhumibol Adulyadej died after a 70-year reign and his successor, Crown Prince Maha Vajiralongkorn, has declared his wish to wait until he ascends the throne.
October 4, 2016
In September, consumer prices inched up 0.04% from the previous month, which contrasted the 0.04% decrease observed in August and overshot market expectations of a 0.1% increase.
September 30, 2016
In August, the trade balance recorded a USD 2.1 billion surplus, which was above the USD 0.7 billion surplus observed in the same month of the previous year and was also higher than the USD 0.8 billion surplus registered in July.
September 30, 2016
In August, manufacturing production increased 3.1% over the same month last year, which was a sharp upswing from the 5.0% contraction seen in July and marked the highest reading in over three years.
September 14, 2016
At its 14 September monetary policy meeting, the Bank of Thailand (BoT) decided unanimously to keep the one-day repurchase rate at 1.50% as the markets had expected. In its press release, the Bank commented that the Thai economy had accelerated in the second quarter on the back of strong private consumption and resilient public expenditure.