Bangkok, August 15 (BNA): Thailand’s economic growth improved in the second quarter, official data showed on Monday, as the service sector gained momentum due to the easing of epidemic-related restrictions and stimulus measures implemented to support tourism.
Gross domestic product grew 2.5% from last year, the National Council for Economic and Social Development’s office said, faster than the 2.3% expansion seen a quarter ago.
However, this was weaker than the expected 3.1% growth.
On a quarterly basis, economic growth eased to 0.7% from 1.2% in the first quarter.
The rate was expected to slow moderately to 0.9%.
A breakdown of the spending side showed that private consumption growth rose to 6.9% from 3.5%, driven by strong growth in net services.
Meanwhile, government spending growth slowed to 2.4% from 7.2%.
Moreover, gross fixed capital formation recorded a year-on-year decline of 1.0%, reversing a 0.8% rise in the previous period.
Exports of goods and services are up 8.5% annually, after a 12.1% rise.
Imports grew faster by 9.1% after rising 6.2%.
On the production side, farm output expanded by 4.4%.
Non-farm production rose 2.3%, mainly due to a 4.6% rise in the services sector.
However, the industrial sector declined by 1.8%.
Although higher commodity prices will affect the recovery, with the tourism sector enjoying a good recovery, the recovery is set to continue over the coming months, said Gareth Leather, an economist at Capital Economics.
This should give the central bank confidence to proceed with further increases.
NM