Thailand Quarterly GDP Stagnates in Q3

Thailand's economy unexpectedly showed no growth on quarter in the three months to September 2018, missing market consensus of a 0.6 percent expansion and after a downwardly revised 0.9 percent growth in the previous quarter. It was the weakest quarterly reading since a contraction in the March quarter 2014, due to a marked slowdown in private consumption and a further drop in government spending while net exports contributed negatively to the GDP.

On the expenditure side, private consumption increased at a softer 1 percent, compared to a 1.8 percent advance in the second quarter. At the same time, gross fixed capital formation rose by 0.8 percent, following a 0.7 percent fall in the June quarter. Meanwhile, government spending shrank 0.6 percent, after a 0.5 percent drop in the June quarter and marking the third straight quarter of decline. Also, net external demand contributed negatively, as exports of goods and services declined 4 percent, after a 2 percent in rise the preceding quarter, while imports rose by 3.2 percent (vs 1.7 percent .

On the production side, the agriculture sector contracted 8 percent, following a 9.6 percent increase in the prior three month-period. Also, financial intermediation shrank 1 percent, compared to a 3 percent growth in the prior quarter. On the other hand, output growth accelerated for: manufacturing (0.6 percent vs 0.2 percent in Q2); and wholesale and retail trade; repair of motor (1.9 percent vs 1.6 percent).

Year-on-year, the economy grew an annual 3.3 percent in the September quarter, also missing estimates of  a 4.2 percent expansion and after a 4.6 percent growth in the June quarter. It marked the slowest pace of expansion since the December quarter 2016.  

For 2018, Southeast Asia's second biggest economy is expected to advance 4.2 percent, compared to an earlier projection of 4.2 to 4.7 percent. Exports for the year is estimated to increase by 7.2 percent, lower than a previous forecasts of 10 percent.

Thailand Quarterly GDP Stagnates in Q3

NESDB l Rida |
11/19/2018 3:50:42 AM