Following months of anti-government protests that hurt investment, tourism and consumption, the military seized power on May 22nd 2014. The country avoided recession in the second quarter of 2014, as a slowdown in political tensions helped exports and public spending, while consumer confidence improved. However, in June of 2014, manufacturing production contracted for the fifteenth straight month and the number of tourist arrivals fell to its lowest in more than two years.
The Office of the National Economic and Social Development Board said the economy contracted 0.1 percent in the first half of 2014 due to the prolonged political disturbances in the first five months of 2014, the slow recovery of export sector, and the continued decline in car production and sales. It also said the GDP is likely to grow at a slower pace than previously projected (1.5%-2.0% from 1.5%-2.5% previously estimated).
On a yearly basis, the GDP expanded at a faster-than-expected 0.4 percent in the second quarter of 2014, recovering from a revised 0.5 percent contraction in the first three months of 2014.