Thai growth quickens in second quarter on higher consumption, tourism

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 showed, beating analysts' expectations for a 2.1% expansion in a Reuters poll.

In the January-March quarter of 2024, gross domestic product 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.