Thailand: Economy accelerates slightly in Q3 on stronger domestic demand
November 17, 2014
In Q3, GDP expanded 0.6% over the same period last year. The figure followed the 0.4% expansion tallied in Q2 and undershot the 1.0% expansion the market had expected. Q3’s expansion reflected an improvement in domestic demand, while the external sector performed worse compared to the previous quarter.
Private consumption rose 2.2% over the same period last year, which was an improvement over the 0.2% increase observed in the second quarter. However, growth in government consumption decelerated from 2.1% in Q2 to 0.4% in Q3, thus marking the slowest increase since Q1 2012. Fixed investment rebounded from a 6.9% contraction in Q2 to a 2.9% expansion in Q3.
On the external side of the economy, exports of goods and services dropped 4.0% in Q3 (Q2: -0.6% year-on-year). Meanwhile, imports fell 1.1%, which represented a much softer contraction than the 9.0% decrease observed in the previous quarter. As a result, the external sector’s net contribution to overall economic growth fell from 5.2 percentage points in the second quarter to minus 2.4 percentage points in the third quarter, thus marking the lowest level since Q2 2012.
On a quarter-on-quarter basis, GDP expanded 1.1% in seasonally-adjusted terms in Q3, which matched Q2’s result.
Author: Dirina Mançellari, Senior Economist