The National Economics and Social Development Board (NESDB) reported that the Thai 2Q12 GDP expanded +4.2YoY%, improving from the +0.4% YoY in 1Q12 and on a quarterly basis expanded +3.3% QoQ.
Chart 1: Thailand quarterly & Annual GDP Growth YoY%
Chart 2: Thailand’s Quarterly GDP Growth YoY%
Key drivers appear to be:
- Consumption +5.9%
- Investments: +10.2%
- Government spending: +5.6%
- Exports: +0.9%
- Imports: +8.5%
Well the economy has been driving mainly by investments as a function of the recovery from the floods last year and consumption. Going forward well exports will suck, no doubt about that, Europe’s impact will continue to last throughout the rest of the year. The only additional upside I can see for the Thai economy is if the government can finally get its act together and go ahead with its massive amount of infrastructure spending projects which would flush the economy with THB 3 tn. But alas they are still fighting internally….