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Bloomberg
Thailand’s economy grew at the slowest pace since 2014 in the first quarter as weaker global demand and trade tensions weighed on exports.
Gross domestic product rose 2.8 percent from a year ago, down from a revised 3.6 percent in the fourth quarter, the National Economic and Social Development Council said. That’s the slowest pace since the end of 2014. The expansion was in line with the Bloomberg survey estimate of 2.8 percent.
The trade fallout from US-China tension and Brexit both impacted the economy, Thosaporn Sirisumphand, the secretary general of the council, said in a briefing in Bangkok. A high year-earlier base, moderating tourism and lower government investment amid political uncertainty sapped growth, he said.
The second half should be better than the first six months, in part because the global trade environment is expected to improve, he said.
The export-reliant economy is facing increasing risks that are weighing on the outlook: weaker global demand, rising US-China trade tensions, a stronger currency, subdued tourism growth, and political uncertainty amid a drawn-out election contest.
The NESDC said growth will probably come in at 3.3 percent to 3.8 percent this year compared with an earlier forecast of 3.5 percent to 4.5 percent. The forecast assumes a new government will be set up smoothly and that the budget will be delayed at most by four months. The Bank of Thailand left its benchmark rate unchanged in May amid a weaker growth backdrop.