Thailand GDP

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Thailand: Economy recovers in Q2 due to stronger private consumption

August 18, 2014

In Q2, GDP expanded 0.4% over the same period last year. The figure contrasted the 0.5% contraction tallied in Q1, but came in below the 0.7% expansion the market had expected.

The quarterly rebound reflected mainly an improvement in private consumption, which rose 0.2% over the same period last year (Q1: -3.0% year-on-year) and marked the highest increase since Q2 2013. Government spending decelerated from a 4.2% increase in the first quarter to a 1.9% rise in the second quarter. Fixed investment fell 6.9% in Q2, which was up from the 9.3% decrease recorded in Q1.

On the external side of the economy, exports of goods and services dropped 0.7% in Q2 (Q1: -0.5% yoy). Meanwhile, imports fell 9.2%, which followed the 8.6% decrease observed in the previous quarter. As a result, the external sector’s net contribution to overall economic growth rose from 4.6 percentage points in the first quarter to 5.2 percentage points in the second quarter, thus marking the highest contribution since Q4 2009.

On a quarter-on-quarter basis, GDP expanded 0.9% in seasonally-adjusted terms in Q2, which contrasted the revised 1.9% decrease recorded in Q1 (previously reported: -2.1% quarter-on-quarter).

The Central Bank expects the economy to expand 2.7% this year and 4.8% in 2015. FocusEconomics panelists reduced their growth projections for both this year and next. For 2014, the panel expects the economy to grow 1.5%, which is unchanged from last month’s estimate. For next year, the panel projects that GDP will grow 4.2%.


Author:, Senior Economist

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Thailand GDP Q2 2014

Note: Year-on-year changes of GDP in %
Source: Office of National Economic and Social Development Board (NESDB) and FocusEconomics Consensus Forecast.


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