Thailand Economy Expands 0.8% QoQ in Q2

The Thai economy grew by 0.8 percent on a quarter-on-quarter seasonally adjusted basis in the second quarter of 2016, compared to an upwardly revised 1.0 percent growth in the previous quarter and above market consensus of a 0.5 percent expansion. A sharp increase in private consumption were unable to offset a decline in government spending, investment and exports.

In the June quarter, private investment expanded 1.9 percent, accelerating from a 0.9 percent growth in the March quarter. In contrast, government spending shrank 3.6 percent, following a 0.6 percent growth in the preceding quarter. Gross fixed capital formation decreased by 3.3  percent, after registering a 4.5 percent expansion in the previous quarter. Exports of goods and services fell 3.3 percent, compared to a 4.5 percent growth in the previous three months. In contrast, imports of goods and services went up by 0.8 percent, following a 2.8 percent decline in the preceding quarter.

On the production side, all sectors in the economy expanded: agriculture (+1.9 percent from -1.0 percent), manufacturing (+1.2 percent from -0.5 percent), wholesale and retail trade, repair of motor (+1.0 percent from +0.9 percent) and financial intermediation (+1.7 percent from -0.2 percent).

Year-on-year, the country's GDP expanded  3.5 percent from a year earlier, as compared to a 3.2 percent expansion in the previous quarter and beating market expectations of a 3.2 percent expansion. It iwas the strongest growth since the March quarter of 2013.

Thailand Economy Expands 0.8% QoQ in Q2

NESDB l Rida Husna |
8/15/2016 7:30:17 AM