Thailand’s economic growth unexpectedly softened in the third quarter on falling government spending and weaker exports, the Office of the National Economic and Social Development Council said Monday.<\/p>\n
Gross domestic product grew 1.5 percent annually after rising 1.8 percent in the second quarter. The growth rate was forecast to improve to 2.4 percent.<\/p>\n
Quarter-on-quarter GDP growth accelerated to 0.8 percent from 0.2 percent in the previous three months. Nonetheless, this was weaker than economists’ forecast of 1.2 percent expansion. <\/p>\n
Household spending and investment contributed positively on the expenditure-side, while government consumption acted as a drag.<\/p>\n
In the external sector, exports slowed down, whereas imports logged a consecutive fall.<\/p>\n
Private consumption growth improved to 8.1 percent from 7.8 percent, driven by a persistent rise in numbers of domestic and foreign tourists. <\/p>\n
Growth in gross fixed capital formation advanced to 1.5 percent from 0.4 percent. The improvement reflects strong private investment in construction and machinery. <\/p>\n
By contrast, government spending declined 4.9 percent after a 4.3 percent fall. <\/p>\n
The decrease resulted from social transfers in kind – purchased market production which plunged 38.6 percent, due mainly to healthcare spending on COVID-19.<\/p>\n
Exports grew only 0.2 percent, following a 0.6 percent gain. At the same time, imports decreased at a faster pace of 10.2 percent after a 2.3 percent drop a quarter ago. <\/p>\n