Thailand’s GDP Growth Accelerates in Q4 of 2012


In the last three months of 2012, the Thai economy expanded 18.9 percent over the previous year, after increasing a revised 3.1 percent in the previous quarter. This highest quarterly growth on record was supported by the adjustment after a severe contraction in the same quarter of 2011, pick up in exports and a surge in domestic demand.

The acceleration was a result of expansion in both domestic demand and  external sector. Household consumption rose by 12.2%, improving from a rise of 6.0% in the previous quarter as consumption on durable goods—especially motor vehicles grew considerably. At the same time, consumption of semi-durable goods, non-durable goods, as well as services all rose. Government consumption grew by 12.1% compared to a rise of 9.8% in previous quarter, contributed mainly by compensation of employees, and net purchase from enterprise and aboard. Total investment grew by 23.5%, accelerating from a 15.5% rise in previous quarter,  due to  a 21.7%  growth inprivate investment and a 31.1% rise in public investment. Exports and imports of goods and services accelerated by 19.0% and 14.7%, contrasting with a fall of 2.8% and 1.8% in the previous quarter, respectively.

Non-agricultural production accelerated by 21.3%, the highest growth record. This was due mainly to a 37.4% rise in manufacturing sector,  in contrast to a fall of 1.1% in the previous quarter. Such acceleration was led by motor vehicles and export-oriented production as exports of goods recovered.  All other sectors were also on the rise including mining and quarrying (11.9%), electricity, gas and water supply (13.2%), construction (14.1%), wholesale and retail trade (7.6%), hotels and restaurants (25.4%), transports and communication (12.8%), financial intermediation (9.9%),  and  other service sectors (8.2%)—composing of real estate services (8.0%), public administration and  defense (4.6%), education (8.7%), health services (4.6%), and other community services (15.3%).
 
Agricultural sector, on the other hand, slowed down by 0.8%. This was due to a 2.2% rise in agricultural production, compared to a rise of 11.4% in previous quarter as  crops production grew slower despite rising of prices. Meanwhile, livestock production grew by 5.1%. Fishery item continued to fall by 5.8%.
 
After seasonally adjusted, the GDP grew by 3.6% on the quarter-on-quarter basis, compared to a rise of 1.5% in the previous quarter.

NESDB | Nuno Salva | nuno.salva@tradingeconomics.com
2/18/2013 11:53:05 AM