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Thailand's growth highest for 3 years

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Thailand's growth highest for 3 years




You only have to visit Thailand to appreciate that the country is going through a period of growth and this has been confirmed by figures that have recently been released. Thailand’s GDP grew by 3.5% from the previous year in the second quarter of 2016. This was an increase on the first quarter of the year which saw a 3.2% expansion and surpassed expectations of a 3.2% increase. This was the strongest recorded growth since the first quarter of 2013.


The reason for this growth was largely due to a risen in private consumption that rose by 3.8%, compared with 2.3% in the previous quarter. A significant increase was recorded in the purchase of new vehicles which rose by an impressive 13.1%, especially after a contraction of 2.4% in the previous quarter. Income from the farming sector also rose and did the income from the fishing industry and this in conjunction with fiscal stimulus packages during the Songkran festival also helped.


Export of goods and services continued to rise, rising by 0.6% even with the Thai Baht continuing to strengthen. Imports again decreased as they did in the first quarter helping with the Balance of Payments as well as confirming the confidence and sustainability of the economy.


Hotels and restaurants also reported increases with this sector growing 12.7% proving that the country is still attracting an increasing number of visitors from overseas as well as suggesting that Thai nationals now have greater disposable income. This confirms information previously reported by the Tourism Authority of Thailand (TAT) that tourist arrivals were predicted to be around 32 million for 2016. This news will be welcomed in cities such as Pattaya where tourism makes up a huge percentage of the local economy. Investors will also be happy with the news.


The projected growth for 2016 as a whole is still predicted to be between 3% and 3.5%, unchanged from previous forecasts. Exports are still expected to decline although this may be a prudent prediction. If greater analysis is carried out on the period from January to June 2016, the economy grew by 3.4%, a significant increase on the 2.8% expansion the previous year.


Once again, all the news coming out about the financial performance of the Thai economy is very positive. Business and private investors will be looking with intrigue and anticipation for what 2017 holds but predictions are once again very positive.


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BANGKOK 24 July 2017 05:55
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