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
Comments

Economics

Productivity is Key to Thailand’s Growth and Prosperity, says World Bank

The Thai economy is projected to pick up moderately to 2.7 percent in 2020 as private consumption recovers and investment picks up due to the implementation of large public infrastructure projects.

World Bank

Published

on

Thailand’s growth slowed to an estimated 2.5 percent in 2019 from 4.1 percent in 2018, due to external and domestic factors.

(more…)

Continue Reading

Economics

Thailand plans One trillion baht state budget to stimulate economy

Deputy Prime Minister, Dr. Somkid Jatusripitak, said that about 1 trillion baht of the government’s budget will be spent to stimulate the Thai economy.

Boris Sullivan

Published

on

Thai premier holds meeting on 2020 Budget

BANGKOK (NNT) – The ongoing trade war between the United States and China and a delay in state spending have added uncertainty to the country’s economic outlook.

(more…)

Continue Reading

Economics

Investment promotion requests exceeded 750bn baht in 2019

An impressive 59% was in the Eastern Economic Corridor, with China outreaching Japan to become the biggest international investor in Thailand.

National News Bureau of Thailand

Published

on

Bangsue railway station

BANGKOK (NNT) – Thailand remained an investment destination for international investors last year, as reflected in the overall value of investment promotion requests in 2019, released by the Board of Investment (BOI) today, which exceed a 750 billion baht goal.

(more…)

Continue Reading

Most Read

Upcoming Events

Thu 23

12th World Congress on Alzheimers Disease & Dementia

January 23 @ 9:00 am - January 24 @ 5:00 pm BMT
Feb 12

Future Energy Asia

February 12 - February 14
BITEC
Bangkok
Feb 19

13th World Congress on Nursing and Health Care

February 19 @ 9:00 am - February 20 @ 5:00 pm BMT
Phuket
Phuket city
Mar 11

Food science conferences

March 11 @ 8:00 am - March 12 @ 5:00 pm BMT
Mar 11

Food science conferences

March 11 @ 9:00 am - March 12 @ 5:00 pm BMT

Press Release

Subscribe via Email

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

Join 12,058 other subscribers

Trending