Thai economy in Q2 grew by 1.8%

Chatrudee Theparat

Thai economy in Q2 grew by 1.8%, lower than previous projection
The National Economic and Social Development Council (NESDC) announced the Thai economy in the second quarter expanded by 1.8 %(YoY), compared to 2.6 % in the previous quarter. After seasonally adjusted, the economy increased by 0.2 % from the first quarter of 2023 (%QoQ sa).

Secretary general Danucha Pichayanan said the economic growth in the second quarter grew less than expectation because export was contracted by 5.6 % caused slowdown of manufacturing sector while the government consumption expenditure declined.

The agency reported export value was recorded at 70.2billion US dollars, accounting to a 5.6 % contraction, continuing from a 4.5% contraction in the previous quarter. The export contraction was connected three quarters.

Mr. Danucha said the exports volume dropped by 5.8 %, continuing from a 6.4-% contraction in the previous quarter, while the export price expanded by 0.3 %, slowing down from 2 % in the previous quarter.

Import value was recorded at 68.1 billion US$, which declined by 5 % compared with a 2 % expansion in the preceding quarter, in line with a decrease in industrial production and exports.

Government consumption expenditure declined by 4.3 %, continuing from a 6.3 % contraction in the previous quarter.

On the expenditure side, the economy was mainly driven by the acceleration of private consumption despite the slowdown of private investment and export of services.

Private consumption expenditures increased by 7.8 %, accelerating from a 5.8-% expansion in the previous quarter.

Stronger consumption growth was also in consistent with higher consumer confidence observed by highest level in 14 quarters of Consumer Confidence Index towards the economic situation of 50.3, increasing from 46.9 in the previous quarter.

Total investment expanded by 0.4 %, slowing down from a 3.1 % in the previous quarter. This was mainly due to a softened private investment which 1 % growth, compared with 2.6 % in
the previous quarter.

Public investment decreased by 1.1 %, compared with a 4.7% in the previous quarter.