Thai economy grows at 15-year-high rate of 12 pct in first quarter
Thailand's GDP soars by better-than-expected 12 percent in Q1 ahead of recent riots in the capital city of Bangkok.
Thailand’s economy expanded by 12 percent, the highest in 15 years, during the first quarter of this year as a result from global economic recovery and the improvement in the country’s exports, tourism, and private investment and consumption collectively.
Dr. Ampon Kittiampon, secretary-general of the National Economic and Social Development Board (NESDB), on Monday said the higher-than-expected growth of 12 percent, compared with that of the same period last year, expanded from 5.9 percent in the previous quarter while the seasonally adjusted gross domestic product (GDP) grew by 3.8 percent, compared to the previous quarter, and gradually expanded for four consecutive quarters, from 2.4, 1.4 and 4.0 percent in the second, third and fourth quarter of 2009 respectively, indicating a strong recovery of Thai economy.
Dr. Ampon said the state planning agency has however adjusted its forecast for this year’s economic growth to 3.5-4.5 percent from previously projected 6-7 percent after the current political turmoil had caused riots and widespread arson and looting in Bangkok.
Although the economy in the second quarter may not contract, due to the continuing growth in exports and tourism income in the first quarter, he said, the economy in the second half of this year may shrink if there is still a political turmoil and the problem cannot be brought under control.
Dr. Ampon said the government should urgently restore confidence among local and foreign investors and push forward the reconciliation plan for Thai people while continue its economic stimulus projects and speed up the disbursement of 2011 fiscal budget.
According to the report of the NESDB, the country’s export value in US dollars rose by 32 percent during the first quarter after the contraction of 13.9 percent last year, mainly due to huge increases of 73.4 percent in vehicles, parts and accessories, 53 percent in computer and accessories, 35.5 percent in electrical appliances and 59.5 percent growth in electronic integrated circuits.
The export volume and price also increased by 17.7 and 12.1 percent respectively, with a support from the recovery of foreign demand as the global economic condition improved and the implementation of ASEAN Free Trade Area (AFTA), the report said.
In addition, the export of agricultural commodities during the quarter also increased significantly both in terms of volume and price by 6.1 and 51 percent respectively, resulting in a considerable increase of export value of 60.2 percent.
The volume and value of manufacturing products meanwhile continued to expand by 20.2 and 29.3 percent respectively while the export price increased by 7.6 percent.
The export value of food products, excluding sugar, increased by 16.2 percent during the quarter, with a 34-percent rise in the value of frozen and processed shrimps and an 18.7-percent increase in the value of canned, fresh, frozen and processed vegetables and fruits.
The report said Thailand’s export market expanded in both major markets and other markets, particularly in ASEAN where there was an increase of 67.3 percent in export value, whereas other markets including those in China, US, Japan and EU experienced an increase in export value of 69.9, 22.8, 29.4 and 21.7 percent consecutively, while, in new markets, the value of export to South Korea, Taiwan and India have increased favourably by 42.8, 69.6 and 92.4 percent respectively.
During the first quarter, the country’s private investment remarkably grew by 15.8 percent, indicating an improvement in investor confidence towards economic prospect while the manufacturing production expanded by 22.8 percent especially the export-oriented industries such as electronic products, electrical appliances and automobile industries which recorded a growth rate of 60.7, 52.2 and 86.6 percent respectively, said the report.
In tourism sector, the total number of foreign tourists recorded a historical high of 4.7 million, an increase of 28.4 percent from the same period of last year.
However, during the quarter the import value in US dollars rose by 63.6 percent, expanding further from the previous quarter’s increase of 1.4 percent, as the import price rose by 11 percent mainly due to the rising oil prices while the import volume expanded by 47.4 percent after the contraction of 4.81 percent in the previous quarter.
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