BANGKOK- Thailand’s economy unexpectedly grew in the second quarter from the first helped by exports and government spending even though fresh coronavirus outbreaks battered consumption and tourism.
The government again cut its 2021 economic growth forecast to 0.7-1.2 percent from 1.5-2.5 percent as the outbreak and lockdown measures crimped domestic activity amid Thailand’s slow vaccination rollout. The economy slumped 6.1 percent last year.
Thailand’s biggest COVID-19 outbreak so far has seen a spike in cases and deaths, prompting tougher containment measures in Bangkok and nearby provinces in July before being extended this month, with lockdown areas expanded to 29 provinces – accounting for around 80 percent of GDP.
Southeast Asia’s second-largest economy expanded a seasonally adjusted 0.4 percent in the second quarter from the previous quarter, data from the National Economic and Social Development Council showed, versus a forecast 1.4 percent drop in a Reuters poll.
From a year earlier, gross domestic product (GDP) grew 7.5 percent in the June quarter, beating the 6.4 percent rise forecast by economists, due largely to a GDP slump last year when the pandemic first hit.
The agency cut its GDP outlook for the full year to 0.7-1.2 percent from a previous forecast of 1.5 percent-2.5 percent growth.
However, increased exports, a rare bright spot in the economy, and fiscal measures have lent some support.
The NESDC now expects exports to grow 16.3 percent this year versus a 10.3 percent rise projected earlier.
But the agency predicts only 0.15 million foreign tourists this year, down from a previous forecast of 0.5 million. That compared with nearly 40 million foreign visitors in 2019. – Reuters
