BANGKOK: Thailand’s economy barely grew last quarter as rising government spending failed to counter falling exports and weakening local demand. The outlook for the rest of the year isn’t that much better.
Gross domestic product rose 0.3 percent in the three months through March from the previous quarter, the National Economic and Social Development Board said in Bangkok Monday. The median of 17 estimates in a Bloomberg survey was for a 0.6 percent contraction. GDP grew 3 percent from a year earlier, compared with a prediction of a 3.4 percent gain.
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The agency today cut its forecasts for economic expansion and exports growth this year, and said the second quarter should be better than the first. Prime Minister Prayuth Chan-Ocha has introduced a nano loans program for low-income earners and pledged to increase investment spending to boost consumption and counter weaker overseas sales.
“There has been no sign of a strong economic recovery,” said Benjarong Suwankiri, an economist at TMB Bank Pcl in Bangkok. “Growth will continue to be sluggish, as only the government’s spending has showed signs of picking up, while consumption, investment and exports are still very weak.”
The baht was little changed at 33.47 against the dollar as of 10:23 a.m. in Bangkok. It is the worst performer in the past three months among 11 Asian currencies tracked by Bloomberg.
