Thailand springs a large and positive GDP surprise for Q1, 2018

May 25, 2018 – Asia Today International and ANZ reported this week that the breadth of the acceleration in growth was the most notable feature of Thailand’s Q1 GDP data. Apart from exports, which slightly moderated to 6% year on year (y/y) from 7.4% y/y previously, all other aspects accelerated during the quarter.

Thailand skyline

AND Bank reported that the improvement in investment stretched beyond the public infrastructure investment program.

“The Bank of Thailand’s (BoT) view is that Government spending is starting to crowd in the private sector as well,” ANZ said.

“Public investment increased 4% y/y after declining 6% y/y in the previous quarter. We also believe that improving capacity utilization is supporting investment in the manufacturing sector.”

ANZ noted that net exports were a drag on growth during the quarter, subtracting 1.1% from overall growth, but underlying this was a slowdown in exports and a strengthening of imports alongside domestic demand. (ATI).

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