Thailand’s economy grew at its fastest pace in Q1 this year, making it the fastest growth in the last 5 years with higher domestic consumption and improved exports in its agricultural sector. According to the National Economic and Social Development Board, the government’s economic planning cabinet, Thailand’s GDP in Q1 increased by 4.8% year on year, accelerating from a 4% pace in the previous quarter. Thailand’s GDP growth came in faster than a median of 4% forecast by 10 economists earlier this year. The growth also overshot the government’s prediction from the original forecast of 3.6% – 4.6% to 4.2% – 4.7%.

Domestic demand and spending improved as consumption rate increased by 3.6%, higher than Q4 2017’s 3.4%. Domestic consumption makes up a little less than half of the nation’s economy. The government has increased its spending to 1.9% compared to the previous quarter of 0.2%. Public investments rose by 4.0% after dropping by 6% the quarter before. The agricultural sector has expanded by 6.5% in growth compared to a 1.3% contraction in Q4 last year.

Exports of goods, especially automobiles, electronics and hardware, expanded by 6.0% compared to 7.4% the previous quarter. Private investments have increased by 3.1%, compared to a 2.4% gain in the previous quarter, which provides a potential prospect for companies. On the whole and on a seasonally adjusted quarterly basis, the economy grew by 2% compared with a 0.5% expansion in the previous quarter, which overshot the forecast by 1.2%.

Mr. Somkid Jatusripitak, Deputy Minister of Thailand tells reporters: “We followed through for 5 years to achieve this high performing economic growth. It will be the first step to regain the confidence of the nation.”

Source: CN YES, Money UDN,  Market Watch