Connect with us

Economics

Thailand’s economy grew at 2.3%YOY in 2019Q2, lowest in 19Q

Agricultural sector contracted by drought effect while industrial sector’s deteriorated following the export-related production.

Avatar

Published

on

Thailand’s economic growth in the second quarter of 2019 decelerated at 2.3%YOY, which is the slowest rate in nineteen quarters.

This was significantly due to a drop in exports, both goods and services. For production side, agricultural sector contracted by drought effect while industrial sector’s deteriorated following the export-related production.

EIC assesses 2019 Thailand’s GDP growth would below 3% from global economic slowdown. However, fiscal stimulus packages , which should be approved by the cabinet, are able to positively affect Thailand’s GDP.

Key points
Based on the expenditure approach, exports and tourism pulled down the growth while private consumption progressively expanded.
  • Export values in real terms dropped 5.8%YOY following a drop of 5.9%YOY in the previous quarter due to the global economic slowdown and higher tensions from U.S.-China trade war. Imports also shrank in real terms of -3.4%YOY, down from the previous quarter, which was at -2.6%YOY, from the reduction of raw material, and intermediate goods import for producing exporting products.
  • Service exports contracted from the drop in tourists’ number and transportation income, at-7.0%YOY, which was resulted from a slow in foreign tourist numbers, as well as a decline in transportation income, both in terms of transportation and freight.
  • Private consumption softened, at 4.4%YOY. This was mainly due to the decline in growth of durarable goods, at 5.5%YOY, declined from the expansion of 8.2% YOY in the previous quarter following the drop in auto sales. However, the growth of non-durable, and semi-durable goods accelerated at 3.0%YOY and 4.7%YOY, respectively, compared with the growth at 2.5%YOY and 2.8%YOY in the previous quarter. The continuous growth was supported by economic stimulus through the state welfare cards, valued at THB 13.2 billion.
  • Private investment growth slowed both in construction and machinary&equipment, at 2.2%YOY, reduced from the rise of 4.4%YOY in the previous quarter. This was due to a decline in machinery&equipment investment used in offices, industries, and automotives. Similarly, construction growth also decelerated from residence construction, mainly in Bangkok and Perimeter including municipal.
  • Public investment growth was rebounded at 1.4%YOY after shrinking -0.1%YOY from the previous quarter. This was resulted from the continous expansion in public construction, at the accelerated rate of 5.8%YOY from the increase of 4.1%YOY in the previous period. However, the investment in machinery& equipment continuously dipped at -8.5%YOY, partially affected from no airplanes imported by Thai Airways in the second quarter.

Author: Kampon Adireksombat, Ph.D.  ,Panundorn Aruneeniramarn and Jirayu Photirat 

Source link

EIC or Economic Intelligence Center, a unit of Siam Commercial Bank Public Company Limited, is established to provide business executives with valuable insights for effective decision making.

Continue Reading
Advertisement Load WordPress Sites in as fast as 37ms!
Comments

Economics

Thailand’s Q2 growth rate at 2.3%, lowest in 19 quarters

Thailand’s economic think-tank warned that something must be done quickly by the government, otherwise the economic situation will get worse.

Avatar

Published

on

Thailand’s economic growth rate for the second quarter of this year registered at 2.3%, compared to 2.8% for the first quarter, which is the lowest in 19 quarters

(more…)
Continue Reading

Banking

Thailand’s four challenges : Debt, inequality, plastics and climate change

Thais tended to get into debt faster, for longer and for higher amounts. Indebtedness starts as soon as they begin to work at age 25 and can increase until 56 years old.

Avatar

Published

on

Bank of Thailand Governor Veerathai Santiprabhob, in his speech entitled “Formulating for the Future of Corporate Governance”, delivered at the Finance and Beyond National Director Conference 2019 in Bangkok (July 24th), said Thailand faces four challenges that require good governance in businesses to address.

(more…)
Continue Reading

Economics

Exports contracted by -2.1%YOY in June, or -8.7% without Gold

With the exception of military arms and weapons reshipment to the USA in February, Thai exports value has shrunk continuously for the past 8 months, and the first half of 2019 showing a decline of -4.4%YOY.

Avatar

Published

on

The value of Thai exports in June 2019 fell by -2.1%YOY. With the exclusion of gold, exports dropped further by -8.7% YOY (Gold export in June grew by 317.4%YOY).

(more…)
Continue Reading

Most Read

Upcoming Events

Thu 19

ASEAN (Bangkok)Toys and Preschool Expo

September 19 @ 10:00 am - September 21 @ 7:00 pm BMT
Oct 10
Oct 16

GovInsider Live

October 16 - October 17

Press Release

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 11,118 other subscribers

Trending