Thai GDP Growth Slows to 2.8% YoY in Q2


In the second quarter of 2013, Thai GDP grew by 2.8 percent, decelerating from 5.4 percent expansion reported in the previous quarter as domestic demand slowed down and exports declined.

On the expenditure side, household consumption increased by 2.4 percent, slowing down from a rise of 4.4 percent in the previous quarter as consumption on durable and semi-durable goods grew at slower pace. However, consumption of non-durable goods and services increased.

Total investment expanded by 4.5 percent, decelerating from a 5.8 percent rise in the previous quarter, due to slowdown in both private and public investment by 14.8 percent and 1.9 percent, respectively. Government consumption grew by 5.8 percent.

Net exports of goods and services came down by 3.9 percent, compared to a 9.0 percent rise in the previous quarter. This consists of a 1.5 percent fall in exports of goods, and slowdown in service receipt. At the same time, imports of goods decelerated by 4.4 percent and service payment increased slightly.

On the production side, the agricultural sector grew only by 0.1 percent, slowing down from a rise of 0.8 percent in the previous quarter, mainly due to a fall in fishery as a consequence of the decrease in shrimp production.

Non-agricultural production grew by 3.0 percent, slowing down from a rise of 5.8 percent in the previous quarter. Manufacturing production declined by 1.0 percent as external demand has not recovered while domestic demand slowed down.

Other major sectors with slowdown expansion were mining and quarrying (2.9 percent); electricity, gas and water supply (2.7 percent); construction (5.0 percent), transports and communication (7.5 percent); and wholesale and retail trade (2.9 percent). On the other hand, services sectors showed favorable growth including hotels and restaurants (14.2 percent) in line with increasing number of foreign tourists; financial intermediation (10.3 percent); and other service sectors (5.6 percent compared to 2.5 percent in previous quarter).

On a quarter-on-quarter basis, the GDP decreased by 0.3 percent, compared to a fall of 1.7 percent in the previous quarter.

Thai GDP Growth Slows to 2.8% YoY in Q2


NESDB | Joana Taborda | joana.taborda@tradingeconomics.com
8/19/2013 5:19:35 PM