Thailand GDP Growth Improves In Q2

(RTTNews) - Thailand's economic growth improved in the second quarter as the service sector gained momentum, resulting from the easing of pandemic related restrictions and stimulus measures implemented to support tourism, official data showed Monday.

Gross domestic product grew 2.5 percent from the last year, faster than the 2.3 percent expansion seen a quarter ago, the Office of the National Economic and Social Development Council said. Nonetheless, this was weaker than the expected 3.1 percent growth.

On a quarterly basis, economic growth eased to 0.7 percent from 1.2 percent in the first quarter. The rate was forecast to slow moderately to 0.9 percent.

The expenditure-side breakdown showed that private consumption growth advanced to 6.9 percent from 3.5 percent, driven by the strong growth in net services.

Meanwhile, growth in government spending decelerated to 2.4 percent from 7.2 percent. Further, gross fixed capital formation logged an annual fall of 1.0 percent, reversing a 0.8 percent rise in the preceding period.

Exports of goods and services gained 8.5 percent annually, following a 12.1 percent rise. Imports grew at a faster pace of 9.1 percent after climbing 6.2 percent.

On the production-side, farm output expanded 4.4 percent. Non-agricultural production increased 2.3 percent, mainly due to a 4.6 percent rise in the service sector. However, the industrial sector declined 1.8 percent.

Although higher commodity prices will drag on the recovery, with the tourism sector enjoying a decent rebound, the recovery is set to continue over the coming months, Gareth Leather, an economist at Capital Economics, said. This should give the central bank the confidence to press ahead with further increases.