Thailand's Economic Growth Accelerates In Q2

Sep 3, 2007 - The Thai economic growth accelerated on exports in the second quarter, government data showed Monday.

The economy grew 4.4% year-over-year in the second quarter, larger than a revised 4.2% growth registered in the prior quarter, the Office of the National Economic and Social Development Board said. The growth number for the first quarter was revised down from the initial estimate of 4.3%. Economists were looking for an annual growth of 4.1% in the second quarter. On a sequential basis, the GDP growth stood at a seasonally adjusted 1.3%, slightly larger than the 1.2% in the first quarter.

During the first half of the year, economy expanded 4.3%.

The report said although the exports growth slowed to 22.6% from 32.9% in the first quarter, net exports was the main contributor to the annual GDP growth.

Government expenditure surged 7.4% in the second quarter, while household consumption improved only by 0.9%, continuing its downward trend since the second quarter of 2006. Total investment moved up 0.2%, reversing a 1.5% decline in the previous quarter as public investment increased. Private investment slid 0.8%, while public investment growth climbed at a faster pace of 3.1%.

Agriculture production growth increased to 9.7% from the 3.3% growth seen in the prior quarter. Meanwhile, non-agricultural sector growth came in at 4.0%, smaller than the 4.3% rise recorded in the first quarter reflecting slowdowns in most major sectors.

Manufacturing improved at a slower pace of 4.4% compared to 4.6% in the prior quarter. This resulted from the slowdown in light industries as well as capital goods and high technology industries growth.

Meanwhile, mining and quarrying sector improved 5.6%, larger than the 1.1% growth seen in the first quarter. Construction sector grew 3.7% on the back of public sector construction. Wholesale and retail trade advanced 2.4%, due to an increase in agricultural products in the market.

Merchandise exports decelerated to 7.9% in the second quarter from the 8.5% seen in the first quarter. On the other hand, services receipts climbed 1.8%, larger than the 0.5% rise in the previous quarter. Merchandise imports were up 3.0% and service payments jumped 7.2% in the second quarter. The trade balance at current market prices showed a surplus of 51.4 billion baht.