BANGKOK (Reuters) – Thailand’s economic growth strengthened in the second quarter due to higher consumption, tourism and exports, official data showed on Monday, and the government narrowed its full-year growth forecast range.
Southeast Asia’s second-largest economy grew 2.3% in the April-June quarter from a year earlier, data from the National Economic and Social Development Council (NESDC) showed, beating analysts’ expectations for a 2.1% expansion in a Reuters poll.
In the January-March quarter of 2024, gross domestic product (GDP) rose an upwardly revised 1.6% on the year.
On a quarterly basis, GDP grew a seasonally adjusted 0.8% in the second quarter, lower than an upwardly revised 1.2% expansion in the previous three months and a poll forecast for 0.9% growth.
Private consumption continued to grow in the second quarter but public and private investments contracted, the state planning agency NESDC said in a statement.
The NESDC now expects GDP growth of between 2.3% and 2.8% this year, narrowing from its previous forecast range of 2.0% to 3.0%. Last year’s growth was 1.9%.
Thailand’s economy has lagged regional peers as it faces high household debt and borrowing costs as well as sluggish exports amid a slowdown in top trading partner China.
The planning agency maintained its export growth forecast at 2% for this year.