It is the best growth in almost five years.
Thailand’s GDP grew by 3.7% YoY in Q2 after a 3.3% gain in Q1.
According to UOB, Thailand’s economic growth accelerated to its best pace in almost five years.
Higher external demand boosted the Thai economy. Private consumption also drove growth albeit at a slower pace, hampered by lower spending on durable goods.
However, public investment fell due to a decline in construction investment. Private investment also remained unchanged, as investment expansion in machinery and equipment was compensated with the decline in investment activities of the construction sector.
UOB analyst Manop Udomkerdmongkol said, "Merchandise exports are expected to improve further thanks to demand from advanced and emerging market countries, and tourism is expected to expand steadily. Public expenditure remains a main economic driver."
Thailand's government will run a budget deficit of US$13.5b (THB450b), or 2.8% of GDP, in 2018 to encourage employment and economic recovery.
"Private investment is expected to recover at a gradual pace," Udomkerdmongkol added.
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