Thai GDP Grew Less Than Expected in Q4


Thailand’s economy advanced 2.3 percent from a year earlier in the last quarter of 2014, up from a 0.6 percent expansion in the previous period. The growth was driven by a rebound in government spending and exports while consumption rose at a slower pace.

On the expenditure side, government spending rose 5.5 percent year-on-year, accelerating from a 0.4 percent expansion in the previous quarter, due to a 2.9 percent rise in compensation of employees an a 8.7 percent increase in net purchases of goods and services of the government enterprises. Private consumption increased 1.9 percent year-on-year, slowing from a 2.2 percent growth in the third quarter, due to a decline in spending on durable goods.
 
Gross fixed capital formation increased 3.2 percent, as compared to a 2.9 percent growth in the July to September period. Private investment rose by 4.1 percent after growing 3.9 percent in the preceding quarter as the rebound in private construction offset a slowdown in private machinery and equipment. Public investment dropped 0.3 percent, from a 0.8 percent fall in the previous quarter as a 5.1 percent increase in public construction was not enough to offset a 8 percent drop in public machinery and equipment.

Exports of goods and services grew 4.9 percent, rebounding from a 3.8 percent decline in the preceding quarter, as sales grew to almost all trading partners, except China. Imports decreased 0.3 percent, extending a 1.1 percent fall in the third quarter, due to a decrease in shipments of capital goods and lower purchases of crude oil.
 
On the production side, the non-agricultural sector expanded 2.7 percent compared to a 0.5 percent growth in the third quarter, due to a broad-based expansion in most production sectors. Growth were seen on the manufacturing sector (+ 0.7 percent from a 0.7 percent decline in the previous quarter); mining and quarrying (+ 0.8 percent from -0.8 percent); electricity, gas and water supply (+ 6.3 percent from + 4.5 percent growth); construction (+3.7 percent from -2.7 percent); transport, storage and communication (+6.5 percent from +3.4  percent); wholesale-retail trades and repairing (+2.3 percent from + 0.6 percent ); hotel and restaurants (+3.6 percent  from -4.6 percent); financial intermediation ( +4.5 percent from +4.9 percent) and other services (+ 4.1 percent from + 1.3 percent). In contrast, agricultural sector declined by 3.5 percent, following a 1.8 percent expansion in July to September, as crops production contracted by 4.1 percent while livestock production expanded by 1.9 percent.
 
On a quarter-over-quarter seasonally adjusted basis, the GDP increased 1.7 percent, accelerating from 1.1 percent in the previous period.

For 2014, Thailand’s economy grew 0.7 percent, slowing from a 2.3 percent in the previous year.

For 2015, the country’s GDP is expected to expand between 3.5-4.5 percent.

Thai GDP Grew Less Than Expected in Q4


NESDB l Rida Husna l rida@tradingeconomics.com
2/16/2015 3:18:58 PM