Thailand: Economy accelerates in Q1
May 25, 2015
In Q1, GDP expanded 3.0% over the same period last year. The figure was an improvement over the revised 2.1% expansion seen in Q4 (previously reported: +2.3% year-on-year) and marked the fastest increase since Q1 2013. Q1’s expansion reflected an improvement in domestic demand, while the external sector deteriorated over the previous quarter.
In Q1, private consumption grew 2.4% over the same quarter last year, which was an improvement over the 2.1% increase seen in Q4. In addition, growth in fixed investment accelerated from 3.2% in Q4 to 10.7% in Q1, marking the fastest increase in over two years. Conversely, growth in government consumption slowed slightly from 3.6% in Q4 to 2.5% in Q1.
On the external side of the economy, exports of goods and services rose 1.0% in Q1 (Q4: +4.5% yoy). Meanwhile, imports rebounded from a 0.7% contraction in Q4 to a 2.3% increase in Q1. As a result, the external sector’s net contribution to overall economic growth swung from plus 4.0 percentage points in the fourth quarter to minus 0.8 percentage points in the first quarter.
On a quarter-on-quarter basis, GDP expanded 0.3% in seasonally-adjusted terms in Q1, which was a slowdown over the revised 1.1% increase seen in the previous quarter (previously reported: +1.7% quarter-on-quarter).
Author: Dirina Mançellari, Senior Economist