Thailand posts 4pc growth
BANGKOK: Thailand’s economy posted its strongest growth in five years last year, with solid exports and tourism giving the government confidence to maintain the country’s growth outlook for this year.
While the economy grew slightly less than expected in the fourth quarter as state spending slowed, resilient exports prompted the government yesterday to raise its outlook for exports, which have been the economy’s main engine of growth.
Exporters, however, face tougher challenges ahead from rising United States trade protectionism and a strong baht, hovering at four-year highs. It was down 0.1 per cent after the data.
The economy grew a seasonally adjusted 0.5 per cent in October-December from the previous three months, National Economic and Social Development Board (NESDB) data showed, slower than 0.7 per cent forecast in a poll and 1.0 per cent growth in the previous quarter.
On an annual basis, growth was 4.0 per cent, lower than a median forecast of 4.4 per cent, and the July-September quarter’s 4.3 per cent expansion, which was the fastest annual pace since January-March 2013.
The NESDB maintained its this year’s economic growth forecast at 3.6 to 4.6 per cent, after the economy grew 3.9 per cent last year.
Tim Leelahaphan, economist at Standard Chartered, said he was sticking to his above consensus outlook of 4.3 per cent growth for this year.
“Global economic growth and higher commodity prices, robust import growth — which markets overlook — suggests a strong foundation for export growth this year.”
The government raised its this year’s export growth outlook to 6.8 per cent from five per cent.