The Thai economy experienced its most robust growth in two years during the third quarter, driven by strong investment, exports, and government expenditure, as reported by the Office of the National Economic and Social Development Council on Monday.
Year-on-year, the gross domestic product expanded by 3.0%, improving from a revised 2.2% growth in the second quarter. This marks the fastest acceleration since the third quarter of 2022, surpassing economists' expectations of a 2.6% increase.
On a quarterly basis, GDP rose by 1.2% in the third quarter, accelerating from the previous quarter's 0.8% growth, which was predicted to remain unchanged.
The government anticipates the Thai economy to grow by 2.6% this year, with predictions for GDP growth to range between 2.3% and 3.3% by 2025.
Economist Shivaan Tandon of Capital Economics noted that the stimulus from relaxed fiscal policies will sustain growth in upcoming quarters, counterbalancing a potential slowdown in the tourism sector.
From the GDP expenditure perspective, household spending growth slowed to 3.4% from the previous 4.9%, influenced by a persistent decline in durable goods expenditure. In contrast, government spending exhibited a significant growth at 6.3%, up from a 0.3% increase, marking the first rise in four quarters. Investment rebounded with a 5.2% growth following a 6.1% contraction in the prior quarter. While private investment fell by 2.5%, public investment surged by 25.6%.
Exports of goods and services achieved a double-digit growth of 10.5%, while imports saw an increase of 9.6%.
On the production side of GDP, growth was predominantly driven by a 3.2% rise in the non-agricultural sector, with the services sector expanding by 4.1%. Conversely, the industrial sector's growth slowed to 1.2%, and agricultural production continued its decline, falling by 0.5% in the third quarter.
