Thailand's 2Q GDP Grows Slower but Outlook Optimistic for 2nd Half

Thailand's economy grew at a slower pace in the second quarter, taking cue from the impact of Japan's tsunami that hurt the manufacturing sector. However, the recovery from the auto industry and dynamic Asian markets are expected to help boost the economy in the second half of this year.

During April to June, the gross domestic product expanded 2.6% on year but contracted 0.2% from January to March quarter, according to the release from the Office of the National Economic and Social Development Board (NESDB).

Manufacturing sector shrank by 0.3%, compared with a 1.7% expansion during the first quarter while investment increased 4.1%.

However, exports grew robustly 19.2% to $57.34 billion from the same quarter last year and leaped 23.1% to $113.34 billion during the first six months of this year with China, USA, Japan and Europe as key markets.

Tourism surged 50.8% to 4.37 million during April to June, a marked contrast to the previous year. Visitors from China, South Korea and India rose 160.7%, 65.3% and 53.2% respectively.

For the first half of this year, the Thai economy grew 2.9%.

NESDB has trimmed its 2011 GDP forecast to 3.5%-4% from 3.5%-4.5%. It expects that recovery in the manufacturing sector will help boost the economy although the fragility in global economy remains a concern.

Piyarat Setthasiriphaiboon

7 September 2011