Thailand’s economy grew at a snail’s pace in almost five years in the second quarter as exports and tourism deteriorated, pummeled even further by the tensions from the US –China trade war and a strong local currency.
Gross domestic product rose 2.3% from a year ago, down from 2.8% in the second quarter, the National Economic and Social Development Council said Monday, which was the slowest pace since the third quarter of 2014. The expansion was in the line with the median estimate of 2.3% in a Bloomberg survey of economists.
The quarters’s growth has been affected by slowdowns both domestically and abroad, Thosaporn Sirisumphand, secretary general of the council, said at a briefing in Bangkok. He stated that although the US-China trade war, global anxiety and drought remain as risks going forward, a government stimulus package announced last week, along with potential investments from companies fleeing China amid the trade war, could help offset the damage.
Thosaporn told reporters that further stimulus is possible, including steps to focus on boosting private investment and tourism. He added that the government will also likely boost investment through public spending and disbursements by state enterprises.