Thailand: GDP growth accelerates in the second quarter
August 22, 2022
Growth sped up in the second quarter, with GDP increasing 2.5% on an annual basis (Q1: +2.3% year on year).
Private consumption growth accelerated to 6.9% from the previous quarter’s 3.5% increase. This increase was due to easing Covid-19 restrictions and government stimulus for spending. Meanwhile, government consumption growth slowed to 2.4% in Q2 (Q1: +7.2% yoy), primarily due to the reduction of in-kind transfers. Meanwhile fixed investment dropped, declining 1.0% in Q2, contrasting the 0.8% expansion in the previous quarter.
On the external front, growth in exports of goods and services decreased to 8.5% on an annual basis in the second quarter, which was below the first quarter's 12.1% expansion. Meanwhile, imports of goods and services growth accelerated to 9.1% in Q2 (Q1: +6.2% yoy).
On a seasonally-adjusted quarter-on-quarter basis, economic growth lost momentum, cooling to 0.7% in Q2, from the previous quarter's 1.2% increase.
Commenting on the short-term outlook, Enrico Tanuwidjaja, economist at UOB, stated:
“We are much more sanguine for growth momentum in the second half of the year (3Q and 4Q will likely grow circa the 4% region), which are driven by our assumptions of significantly higher inbound tourists that will likely propel domestic trade activities and further shore up domestic consumer confidence and spending.”