Thai economy spurts in Q2

> GDP expands at fastest pace in four years, aided by strong exports, robust tourism and farm output

BANGKOK: Thailand’s economy capped a solid performance for Southeast Asia in the second quarter, growing at its fastest clip in over four years thanks to strong exports – a common denominator for many countries still struggling to boost private consumption despite ultra-low interest rates.

Robust tourism and farm output also helped Thailand’s growth beat market expectations in the April-June quarter, prompting the government to raise its economic forecasts in a sign the recovery is gaining momentum.

Southeast Asia’s second largest economy joins a host of other countries in the region including Singapore, Malaysia, the Philippines and Taiwan, which have seen growth speed up as an upturn in global demand hovered up the region’s electronics, home appliances and other consumer goods.

The main risks for the region, including Thailand, stems from rising US trade protectionism, an expected slowdown in China’s economy and higher US interest rates.

Thailand’s gross domestic product grew a seasonally adjusted 1.3% in the June quarter from the first, the National Economic and Social Development Board said yesterday, faster than the 1% forecast in a Reuters poll and matched the March quarter’s pace.

On a yearly basis, growth was 3.7%, the quickest rate in more than four years, and easily beating the median forecast of 3.2% and the 3.3% pace clocked in the JanuaryMarch quarter.

“We expect growth to remain relatively strong over the next couple of quarters, helped by strong external demand and loose monetary and fiscal policy,” said Gareth Leather, senior Asia economist at Capital Economics in a client note. – Reuters