Thai Economy Accelerates in Q3

Thailand’s GDP expanded by 2.9 percent from a year earlier in the third quarter of 2015, slightly up from 2.8 percent growth reported in April to June period and above market expectations. A faster increase in exports and in private consumption offset a drop in investment and a slowdown in government spending.

On the expenditure side, private consumption grew by 1.7 percent, following a 1.6 percent increase in the June quarter. While spending on net service rose, those on durable goods dropped and spending on semi durable and non-durable decelerated. Government expenditure expanded by 1.0 percent, slowing from a 3.8 percent increase, as compensation of employees increased by 2.0 percent while consumption of fixed capital grew by 4.9 percent. Purchases from enterprises and aboard also rose by 2.6 percent. In contrast, social transfers in kind fell by 7.7 percent. Gross fixed capital formation declined  by 1.2 percent, following a  2.7 percent growth in the June quarter, mainly due to a 6.6 percent decline in private investment as private construction and investment in machinery dropped. Public investment grew by 15.9 percent, slowing from an a 24.7 percent expansion in the previous quarter, as both investment in construction and public machinery slowed.
Exports of goods and services expanded by 1.8 percent, accelerating from a 1.0 percent growth in the preceding quarter. Imports decreased by 2.4 percent, following a  0.4 percent fall in the June quarter.
On the production side, the non-agricultural sector expanded by 3.4 percent, as compared to a 3.5 percent growth in the second quarter. Growth was seen for: manufacturing (+0.8 percent in the third quarter from -0.7 percent in the previous quarter); mining and quarrying (+0.9 percent from -3.9 percent);  (hotels and restaurants (+10.9 percent from +18.7 percent); construction (+7.7 percent from +17.8 percent); transport, storage and communication (+7.1 percent from +9.4 percent); financial intermediation (+6.5 percent from +8.2 percent); othe community, social and personal service (+5.4 percent from +6.3 percent); electricity, gas and water supply (+4.8 percent from +2.9 percent); wholesale, retail trade and repairing (+3.9 percent from +3.7 percent) and real estate, renting and business services (+2.5 percent from +1.4 percent). In contrast, a contraction was seen for: agriculture, hunting and forestry (-5.8 percent from -5.7 percent) and fishery (-3.1 percent,mainly due to  the cancellation of fishing concession in Indonesian waters and strict enforcement against illegal fishing).

For 2015, the Thailand's economic planning agency (NESDB) now projected the economy to grow by 2.9 percent, following an earlier forecasts of 2.7 percent to 3.2 percent. Exports for the year is expected to fall by 5.0 percent.

On a quarter-over-quarter seasonally adjusted basis, the GDP expanded by 1.0 percent, acclerating from a downwardly revised 0.3 percent  growth in the previous three months and beating market consensus.

Thai Economy Accelerates in Q3

NESDB I Rida Husna |
11/16/2015 1:05:58 PM