Thailand GDP Growth Slows More Than Forecast

(RTTNews) - Thailand's economic growth eased more than expected in the third quarter due to the fall in manufacturing output and softened tourism-related services, official data showed Monday. Gross domestic product grew 1.2 percent year-on-year in the third quarter, the National Economic and Social Development Council, or NESDC, said Monday. The annual growth was forecast to soften to 1.6 percent from 2.8 percent in the second quarter. Quarter-on-quarter, the economy shrank 0.6 percent, offsetting the 0.5 percent expansion in the preceding quarter. This was the biggest fall since mid-2021.

The Thai economy expanded 2.4 percent for the first nine months from the previous year, data showed.

On the production-side, the agriculture sector grew only 1.9 percent in the third quarter. Meanwhile, growth in non-agriculture sector more than halved to 1.2 percent from 2.5 percent. Tourism-related services also decelerated.

The industrial sector shrank 1.0 percent due to lower manufacturing output, while services output rose at a slower pace of 2.3 percent. The expenditure-side breakdown showed that private consumption logged a steady growth of 2.6 percent. Meanwhile, government spending contracted 3.9 percent after a 2.2 percent rise.

The growth in gross fixed capital formation eased to 1.1 percent from 5.8 percent in the prior quarter.

Exports of goods and services posted 6.9 percent growth but weaker than the 11.2 percent rise in the second quarter. Similarly, imports of goods and services gained 4.6 percent after a 10.9 percent rise.