Thailand’s economy grew at a faster pace than economists forecast last quarter, buoyed by tourism and exports.
Key Points
- Gross domestic product rose 3.7 percent in the second quarter from a year ago after expanding 3.3 percent in the first quarter, the National Economic and Social Development Board said on Monday
- The median estimate of 21 economists surveyed by Bloomberg was for growth of 3.2 percent
- GDP rose a seasonally adjusted 1.3 percent in the second quarter compared with the previous three months, higher than the 1 percent median estimate in a Bloomberg survey
Big Picture
Thailand’s growth outlook has strengthened this year on the back of a recovery in global trade, but the economy’s performance still lags peers in Southeast Asia. More than three years after a military coup, political uncertainty continues to curb the private sector’s appetite to invest. At the same time, authorities are struggling to cap gains in the currency after it surged 7.9 percent against the dollar this year, undermining export competitiveness. The Bank of Thailand, which has kept its benchmark interest rate unchanged at 1.5 percent for more than two years, said last week the currency’s strength may hurt businesses.
Other Details
- GDP growth forecast for this year revised to 3.5 percent to 4 percent from 3.3 percent to 3.8 percent; central bank projects growth of 3.5 percent
--With assistance from Michael J. Munoz
To contact the reporter on this story: Anuchit Nguyen in Bangkok at anguyen@bloomberg.net.
To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Sunil Jagtiani at sjagtiani@bloomberg.net.
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