Thai GDP Growth Beats Expectations

(RTTNews) - Thailand's economy grew more than expected in the first quarter, underpinned by resilient domestic demand and strong exports, while regional peers reported weaker growth due to the impact of the war in the Middle East.

Gross domestic product logged an annual growth of 2.8 percent in the first quarter, the National Economic and Social Development Council said Monday. This was faster than the fourth quarter's 2.5 percent expansion and outpaced forecast of 2.2 percent.

However, quarterly economic growth eased to 0.7 percent from 1.9 percent in the fourth quarter.

The expenditure-side of GDP showed that private consumption grew 3.2 percent from a year ago but slightly slower than the 3.3 percent rise in the prior quarter. Government spending growth more than doubled to 3.4 percent from 1.3 percent.

Gross fixed capital formation growth accelerated to 9.9 percent from 8.1 percent.

Exports of goods and services expanded 12.6 percent and imports of goods and services surged 21.1 percent, data showed.

The economy is projected to grow 1.5 percent to 2.5 percent this year, unchanged from the previous outlook. Average inflation is seen in the range of 2.0 percent to 3.0 percent in 2026.

In order to mitigate the impact of the war in the Middle East, the office observed that the government should manage energy security and implement targeted measures to contain the impacts of rising energy costs and accelerate private investment.

Also, growth momentum in exports should be maintained and the fiscal support stimulus should be maintained while preserving fiscal disciple, the NESDC said.