Thailand's economy boosted by domestic demand
- Asian Market
- 2 months ago
Thailand’s economy increased in the fourth quarter at a much faster pace than expected thanks to local demand as it helped to offset a slide in exports.
Gross domestic product rose 3.7% from a year ago, up from a revised 3.2% in the third quarter, according to the National Economic and Social Development Council (NESDC), while GDP rose a seasonally adjusted 0.8% in the fourth quarter compared with the previous three months, which was higher than the 0.7% median estimate.
The economy expanded 4.1% for the whole of 2018, compared with a revised 4% for the previous year and the NESDC expects growth of between 3.5% and 4.5% this year, driven by household spending, investment and tourism.
Private consumption and investment drove fourth-quarter growth as exports were hit by a slowdown in global demand, US-China trade tensions and a strong currency.
While local demand has remained resilient, Thailand is facing period of possible heightened political risks ahead of an election, which could adversely effect sentiments and domestic investment.
The Bank of Thailand, which kept its benchmark rate unchanged this month after the first hike in seven years in December, has said its “accommodative” monetary policy would remain appropriate in the period ahead.
Source: Smart Trend Team