Thailand's economy continued its recovery in the second quarter of 2017, mainly supported by momentum in exports growth and rebound in private investment.
Gross domestic product expanded 3.7% from a year earlier in the second quarter, accelerating from the 3.3% pace in the previous quarter, according to the National Economic and Social Development Board on Monday, the Thai government's economic planning arm.
Growth also came in faster than a 3.2% forecast by economists polled by The Wall Street Journal. The economy is now expected to grow between 3.5%-4% in 2017, up from the previous forecast of 3.3%-3.8%, the board said.
The data highlighted that domestic consumption remained soft during the quarter as private consumption expenditure rose 3.0% in the second quarter from a year earlier, compared with a gain of 3.2% in the first quarter. Private consumption makes up just under half of the Thai economy.
Exports of goods and services, fueled by tech demand and higher commodity prices, also helped support growth, expanding 6.0%, compared with a 2.7% gain in the first three months of 2017. But analysts question whether the gains in exports can continue over the coming quarters as a higher price factor diminishes and as the current tech cycle peaks.
Government consumption expenditure grew at a faster pace than in the previous quarter while agricultural sector grew 15.8%, accelerating from 5.7% in the first quarter of 2017. Private investment rose 3.2% from a year ago. This compared with a 1.1% fall in the first quarter.
On a seasonally adjusted quarterly basis, Thai economy expanded at 1.3%. The acceleration was faster than a 1.0% increase forecast by economists but was at the same pace as recorded in the first quarter on seasonally adjusted on-quarter basis.
Write to Saurabh Chaturvedi at email@example.com
(END) Dow Jones Newswires
August 20, 2017 23:48 ET (03:48 GMT)