Thai Economy Expands 0.6% in Q3

Thailand’s GDP grew 0.6 percent in the third quarter of 2014, improving slightly from a 0.4 percent rise reported in the previous period. While private consumption and investments supported the expansion, exports decreased and government expenditure slowed down.
NESDB l Rida l 11/17/2014 7:04:43 PM
On the expenditure side, private consumption increased 2.2 percent year-on-year compared to a 0.2 percent rise in April to June period. Consumer spending recovered supported by rising consumption of non-durable goods and services, while spending on durable goods declined.
Gross fixed capital formation increased 2.9 percent, after consecutively declining for four quarters with a 6.9 percent fall in the second quarter. Private investment rose by 3.9 percent, due to machinery and equipment item while construction kept declining but in a recovery sign. Public investment dropped 0.8 percent, from a 6.7 percent fall in the previous quarter, as public construction decreased 1.9 percent, following a 0.3 percent fall in the previous quarter. 

Government spending grew 0.4 percent year-on-year, slowing from a 1.9 percent increase in the previous quarter, due to a 2.4 percent rise in compensation of employees, while net purchases of goods and services of the government enterprises decreased 1.1 percent. Exports of goods and services declined 4.9 percent, following a 1.5 percent increase in the previous quarter. Imports recovered with a slight fall of 1.1 percent as compared to 11.4 percent decline in the second quarter.

On the production side, agricultural sector grew by 1.7 percent, decelerating from a 4.2 percent rise in the previous quarter, due to a decline in production of paddy, oil palm, maize and rubber. Livestock output kept increasing while fishery contracted but in a recovery sign. In contrast, non-agricultural sector expanded 0.5 percent compared to a 0.1 percent expansion in the second quarter, driven by a recovery of manufacturing sector, which contracted 0.7 percent, improving from 1.6 percent decline in the previous quarter. Transport, storage and communication grew 3.7 percent, slowing from a 4.8 percent increase in the preceding quarter.

On a quarter-over-quarter seasonally adjusted basis, the GDP increased 1.1 percent, unchanged from the previous period. 

Again, the state planning agency trimmed its economic growth forecast for this year to 1.0 percent from 1.5-2.0 percent seen in August. For 2015, Thailand economy is expected to grow between 3.5 to 4.5 percent.

Thai Economy Expands 0.6% in Q3