Thailand GDP Growth Exceeds Expectations In Q1

(RTTNews) - The Thai economy registered a faster-than-expected growth in the first quarter underpinned by exports, household spending and investment.

Gross domestic product posted an annual growth of 2.7 percent after expanding 1.4 percent in the preceding quarter, the Office of the National Economic and Social Development Council reported Monday. GDP was expected to grow 2.3 percent. Quarter-on-quarter, GDP grew 1.9 percent, reversing a 1.1 percent fall in the prior period. This was also faster than the 1.7 percent economists' expectations.

The economy is projected to expand 2.7-3.7 percent driven by the recovery in tourism sector and the continual growth of private consumption and investment. The forecast was unchanged from the previous outlook.

Headline inflation is seen in the range of 2.5 percent - 3.5 percent and the current account is projected to record a surplus of 1.4 percent of GDP, the NESDC said.

The production-side breakdown revealed a 7.2 percent increase in farm output and 2.3 percent increase in non-agriculture production. Services output was up 5.2 percent.

On the expenditure-side, household consumption climbed 5.4 percent after a 5.6 percent gain. There was a robust growth in the expenditure in services owing to the tourism rebound and the recovery in the spending on durable goods.

Government spending slid 6.2 percent, following a 7.1 percent drop as there was a decrease in social transfers in kind for goods and services.

Gross fixed capital formation logged an increase of 3.1 percent but weaker than the 3.9 percent growth in the prior quarter.

Exports of goods and services increased 3.0 percent, reversing a 0.7 percent fall in the prior quarter. At the same time, imports of goods and services dropped 1.0 percent but slower than the 4.8 percent fall seen a quarter ago.

"Provided political stability is maintained, the economy is well placed to grow strongly this year," Capital Economics economist Gareth Leather said.

The research firm expects growth to accelerate 4.5 percent this year from 2.6 percent in 2022.