Sharp Increase In Consumer Spending Masks Export Weakness

Economic Research	16 August 2016
Thailand
Economic Highlights
Sharp Increase In Consumer Spending Masks Export Weakness Thailand’s GDP expanded 3.5% y-o-y in 2Q 2016, from +3.2% the quarter before. The acceleration in growth was driven exclusively by a strong pick-up in private consumption demand. Meanwhile, government spending, gross fixed capital formation (GFCF) and exports of goods & services all slowed noticeably, capping some of the upside. On the supply side, manufacturing production rebounded modestly, offsetting a slowdown in construction and services activities. Going forward, we expect for private consumption to continue to grow at around its current pace, aided by supportive fiscal measures and until the MRT projects take-off in 4Q. Hence, we maintain our projection for GDP to grow 3.2% in 2016, rising from +2.8% last year. Economist:  Ng Kee Chou  | +603 9280 2179
To access our recent reports please click on the links below: 04 August: Policy Rate Unchanged, BOT Could Intervene If THB Strength Persists 02 August: Thai Referendum: Private Consumption To Be The Early Beneficiaries Of A “Yes” Vote   01 August: Broad Money Rebounded On Accelerated Government Spending 29 July: June MPI Normalised But Positive, 2Q Growth Rebounded 28 July: Export Decline Eased In June, Pointing To A Pick-up In 2Q Manufacturing Activities 04 July: CPI Remains Positive As Consumption Indicators Pick Up