BANGKOK: Economic growth in the second quarter is expected to surpass the preceding quarter’s 3.2% growth, thanks to factors related to fiscal spending and domestic demand, says a senior Bank of Thailand official. “Overall economic growth could expand at a higher pace in the second quarter than in the first, with domestic demand being the main driver despite uncertainty about exports,” said Pornpen Sodsrichai, director of macroeconomic and monetary policy at the central bank.
“[Economic growth in the second half] is expected to be driven by domestic demand factors, particularly public expenditure, tourism and private consumption.” GDP growth unexpectedly hit a three-year high of 3.2% year-on-year in the first quarter, up from the 2.8% of 2016’s final quarter, mainly attributed to government stimulus measures and rapid improvement in the tourism sector. The economy expanded by 0.9% quarter-on-quarter on a seasonally adjusted basis, up slightly from the 0.8% registered in the last three months of 2015.
