In the third quarter, gross domestic product (GDP) expanded 6.7% over the same period last year. The reading was well below the revised 9.2% expansion observed in the second quarter (previously reported: +9.1% year-on-year) and undershot market expectations, which had the economy growing 7.2%. The slowdown in the third quarter was the result of a deterioration of the external sector. Exports decelerated sharply compared to with previous quarter, while imports slowed less notably. Exports of goods and services grew 11.7% in the third quarter, which was down from the 22.3% expansion registered in the second quarter. Imports expanded 21.2% annually, which was only moderately down from the 24.6% increase observed in the second quarter. As a result, the net contribution from the external sector to overall growth swung from a 2.3 percentage-point contribution in the second quarter to a 2.6 percentage-point detraction in the third quarter. On the domestic side, total consumption decelerated in the third quarter, as private consumption grew 5.0% year-on-year (Q2: +6.4% yoy), and government consumption increased only 2.0% (Q2: +8.4 yoy). Gross fixed capital formation marked the slowest expansion so far this year, growing 8.0% annually (Q2: +11.3% yoy). At the sector level, the third quarter reading reflected a contraction in agriculture (Q2:+1.5% yoy; Q3:-3.3% yoy), as a result of the natural disasters that hit the country in recent months. In addition, the industrial sector decelerated (Q2: + 16.5% yoy; Q3: +10.8 yoy). Only the services sector improved, driven by a faster expansion in hotels and restaurants. A quarter-on-quarter analysis confirms the deceleration suggested by annual figures, as the economy contracted a seasonally adjusted 0.23% over the previous quarter. Meanwhile, the government expects the economy to expand 7.9% this year, before slowing to a range of 3.5% and 4.5% in 2011. The Central Bank lifted its 2010 growth forecast in its October inflation report from 6.5% - 7.5% expected previously to the current 7.3% - 8.0%.
Economic activity expands less than expected
November 20, 2010
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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.