Industryweek 5627 Thailand Temple 2
Industryweek 5627 Thailand Temple 2
Industryweek 5627 Thailand Temple 2
Industryweek 5627 Thailand Temple 2
Industryweek 5627 Thailand Temple 2

Thai Economy Grows 2.7% in Q3

Nov. 18, 2013
It was the third straight quarter of slowing growth in the kingdom, and came on the back of a drop-off in consumer spending, the board said, although the economy did benefit from a surge in tourist arrivals and increased state spending.

BANGKOK -- Thailand's economy grew at a lower-than-expected pace in July-September, data showed Monday as the government cut its forecast for the year while analysts warned political turmoil could inflict further damage.

On a year-on-year basis, GDP expanded 2.7% in the third quarter of 2013, weaker than the adjusted 2.9% in April-June, the National Economic and Social Development Board (NESDB) said.

It was the third straight quarter of slowing growth in the kingdom, and came on the back of a drop-off in consumer spending, the board said, although the economy did benefit from a surge in tourist arrivals and increased state spending.

Economists polled by The Wall Street Journal forecast growth at 2.95%.

The economy expanded 1.3 %t in the period quarter-on-quarter, the government agency said, ending a run of negative growth stretching back to January, when the economy contracted by a revised 1.6%.

The NESDB projected the Thai economy "is likely to grow by 3%" in 2013, lower than the 3.8%-4.3% forecast in August.

"In 2014, the Thai economy is expected to grow in the range of 4%-5%," it added, on the back of a global economic recovery and massive state spending on infrastructure. The economy grew 6.5% in 2012.

But with anti-government protests entering a third week on Monday, experts said the specter of political unrest could impact growth.

Critics of Prime Minister Yingluck Shinawatra have held daily rallies after a botched attempt by her administration to push through a political amnesty bill that would have allowed her brother -- and former premier -- Thaksin to return from self-exile.

"As long as protests remain peaceful, the impact on GDP will be short-lived and small," experts at Capital Economics said in a briefing note. "However there is a risk of prolonged and violent unrest," they said, adding any repeat of clashes seen in 2010 would likely batter the kingdom's crucial tourist industry.

Thailand's household consumption dropped by 1.2% on the previous year, the NESDB said, on the back off lower farm incomes and the expiry of a government rebate for first-time car buyers.

However, the kingdom's tourism sector grew 26.1% year-on-year, boosting hotel occupancy rates and restaurant takings.

Copyright Agence France-Presse, 2013

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!