The Thai economy steered clear of a technical recession with a growth of 0.4 percent in the second quarter against a contraction of 0.5 percent in the same quarter last year.
The second quarter was also a 0.9 percent expansion over the first quarter of the year.
But for the first six months of 2014, the country’s economy registered a 0.1 percent contraction year-over-year, according to a report by Bernama, Malaysia’s national news agency.
The government traced the improved performance from April to June on export growth, easing of political tensions, a boost in government spending, rising consumer and business confidence, and agricultural expansion.
Private investment declined, while the manufacturing and construction sectors showed a small contraction as well, said Thailand’s National Economic and Social Development Board (NESDB).
Hotels and restaurants also indicated a downturn, said NESDB.
The agency narrowed the range of projected growth for 2014 to between 1.5 percent and 2 percent from the previous outlook of 1.5 percent to 2.5 percent it made in May.
For 2015, NESDB forecasts a national GDP growth of 3.5 percent to 4.5 percent. It said the Thai economy has the potential to grow by 5 percent to 6 percent annually if trade, investment, infrastructure, and exports would recover according to expectations.
Thailand was placed under military rule in late May following months of political tensions that saw the economy falter. The improved economic results in the second quarter appear to suggest that the coup helped quell doubts and boost confidence in the economy, said experts.
A technical recession is defined as two consecutive quarters of negative growth.
Photo: ccdoh1
