Thai Economy Contracts 0.3% QoQ in Q2

In the second quarter of 2013, Thai GDP shrank for the second quarter in a row by 0.3 percent from the preceding three-month period, due to weakness in exports, domestic consumption and investment.

On the expenditure side, government consumption recorded the highest increase (7.5 percent seasonally adjusted qoq, up from 4.2 percent contraction in the previous quarter), followed by gross fixed capital formation (up by 3.9 percent, after shrinking 3.1 percent in the first quarter). 

Private consumption contracted for the second consecutive quarter by 1.9 percent, as the gradual expiration of the First Car Tax Rebate Scheme caused decelerated consumption in durable goods, particularly vehicles.

While exports shrank for the second quarter in a row by 1.4 percent, imports’ growth rate accelerated to 0.7 percent, from 0.5 percent in the first three months of 2013.

On the production side, manufacturing, construction and agriculture contracted by 3.6 percent, 1.4 percent and 0.6 percent, respectively, while services expanded by 2.2 percent. 

On a year-on-year basis, the GDP expanded by 2.8 percent, down from 5.4 percent recorded in the previous quarter. Domestic demand, although decelerated, continued to be the main driver of the expansion.

Thai Economy Contracts 0.3% QoQ in Q2

Joana Taborda |
8/19/2013 9:51:30 AM