Thai GDP Growth Slightly Below Expectations in Q4

The Thai economy grew by 0.8 percent on a quarter-on-quarter seasonally adjusted basis in the final quarter of 2015, slowing from a 1.0 percent expansion in the previous quarter and slightly below market consensus. A rebound in investment and a faster increase in government spending were unable to offset a decline in private consumption and exports.

In the fourth quarter, government spending expanded by 4 percent, following a 1.7 percent growth in the September quarter. Gross fixed capital formation also increased by 7.5 percent, after registering a 1.3 percent fall in the previous quarter. In contrast, private consumption contracted by 0.1 percent, as compared to a 0.6 percent expansion in the preceding quarter. Exports also fell by 0.3 percent, the same pace as in the preceding quarter. Imports rose 0.2 percent, following a 0.3 percent growth in the September quarter.

On the production side, the non-agriculture sector went up 1.7 percent (1.2 percent in the previous period): construction grew the most (13.8 percent from -2.3 percent), followed by real estate, renting and business activities (5.3 percent from 1.7 percent), education (4.1 percent from 0.4 percent), mining and quarrying (3.2 percent), financial intermediation (+2.9 percent from 0.7 percent), wholesale and retail trade, repair of motor (+2.4 percent from +1.5 percent) and manufacturing (+0.2 percent from +1.3 percent). The agriculture sector went up 1.1 percent, rebounding from a 3.4 percent decline in the third quarter of the year. 

Year-on-year, the GDP advanced 2.8 percent, slightly down from a 2.9 percent  expansion in the September quarter.

For 2016, the Thailand's economic planning agency (NESDB) revised down it GDP forecast to 2.8 percent to 3.8 percent from an earlier forecast of 3.0 percent to 4.0 percent.

For full year of 2015, Thailand GDP advanced 2.8 percent, accelerating from a three-year-low of 0.8 percent in 2014.

Thai GDP Growth Slightly Below Expectations in Q4

NESDB | Rida Husna |
2/15/2016 11:49:45 AM