Economy shrinks 6.4% in busy Q3
Thailand’s GDP contracted by 6.4% year-on-year in the third quarter, with full-year economic contraction projected to arrive at 6%, says the National Economic and Social Development Council (NESDC).
The economy was previously anticipated to contract by 7.5% this year.
The main reason supporting a lower full-year economic contraction is the NESDC projecting the global economy will contract by 3.5%, an improvement from 4.6%, while global trade is expected to decline 11% instead of 12% projected previously.
“The 6% contraction outlook is supported by several improved factors in public and private investments, a private consumption recovery and slight improvement of exports,” said Danucha Pichayanan, NESDC’s secretary-general.
“A contraction of 6.4% in the third quarter was beyond expectations as the economy contracted by 12.1% in the second quarter.”
After a seasonal adjustment, the economy expanded by 6.5% quarter-on-quarter from the second quarter. In the first nine months, the economy contracted by 6.7%.
The council’s projection does not take into account the impact from political conflicts nor a second wave of outbreaks.
The NESDC’s economic forecast for a full-year GDP contraction in 2020 is more optimistic than the Fiscal Policy Office’s 7.7% contraction and the Bank of Thailand’s 7.8% decline.
Full-year exports are projected to fall by 7.5%, according to the NESDC.
GDP shrank by 12.1% year-on-year in the second quarter, the biggest decline since the aftermath in 1998 of the 1997 Asian financial crisis. The first-quarter GDP contraction was 1.8% year-on-year.
Some economic indicators in the third quarter showed improvement from the second quarter, with government consumption and public investment expanding by 3.4% and 18.5%, respectively.
The NESDC’s economic forecast for a full-year GDP contraction in 2020 is more optimistic than the Fiscal Policy Office’s 7.7% contraction and the Bank of Thailand’s 7.8% decline.
Full-year exports are projected to fall by 7.5%, according to the NESDC.
GDP shrank by 12.1% year-on-year in the second quarter, the biggest decline since the aftermath in 1998 of the 1997 Asian financial crisis. The first-quarter GDP contraction was 1.8% year-on-year.
Some economic indicators in the third quarter showed improvement from the second quarter, with government consumption and public investment expanding by 3.4% and 18.5%, respectively.