BANGKOK: Thailand's economic growth improved in the second quarter as the service sector gained momentum, resulting from the easing of pandemic related restrictions and stimulus measures implemented to support tourism, official data showed on Monday.
Gross domestic product grew 2.5 per cent from the last year, faster than the2.3 per cent expansion seen a quarter ago, the Office of the National Economic and Social Development Council said. Nonetheless, this was weaker than the expected 3.1 per cent growth.
On a quarterly basis, economic growth eased to 0.7 per cent from 1.2 per cent in the first quarter. The rate was forecast to slow moderately to 0.9 per cent. The expenditure-side breakdown showed that private consumption growth advanced to 6.9 per cent from 3.5 per cent, driven by the strong growth in net services.
Meanwhile, growth in government spending decelerated to 2.4 per cent from7.2 per cent. Further, gross fixed capital formation logged an annual fall of1.0 per cent, reversing a 0.8 per cent rise in the preceding period.
Exports of goods and services gained 8.5 per cent annually, following a 12.1 per cent rise. Imports grew at a faster pace of 9.1 per cent after climbing 6.2 per cent.
On the production-side, farm output expanded 4.4 per cent. Non-agricultural production increased 2.3 per cent, mainly due to a 4.6 per cent rise in the service sector. However, the industrial sector declined 1.8 per cent.
Although higher commodity prices will drag on the recovery, with the tourism sector enjoying a decent rebound, the recovery is set to continue over the coming months, Gareth Leather, an economist at Capital Economics, said. This should give the central bank the confidence to press ahead with further increases. — dpa
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