Thailand’s Economy Shows Stronger-than-Expected Growth in 3Q15

spells-for-moneyNasdaq — Thailand’s economy beat estimates to expand 2.9% from a year earlier in the third quarter, propped up by government spending that helped offset a global slowdown, the National Economic and Social Development said Monday.

The Thai economy expanded 1.0% on a seasonally adjusted basis during the third quarter from the preceding quarter. The median forecasts from economists polled by The Wall Street Journal anticipated 2.45% on-year and 0.7% on-month growth.

The NESDB attributed the better-than-expected growth to the government’s investment and spending plans to support the economy that helped boost household spending.

NESDB Secretary General Porametee Vimolsiri said at a news conference that the Thai economy’s performance in the past quarter has been “satisfactory” even as the global slowdown continues.

For 2015, the agency forecasts Thailand’s GDP growth at 2.9% — similar to its previous estimate of a range of 2.7%- 3.2%. Mr. Porametee said the expected growth rate for 2015 will be the highest in three years and comes on the heels of a mere 0.9% growth in 2014.

Exports, which normally account for two-thirds of the country’s gross domestic product, are now projected to shrink 5.0%, compared with its earlier estimate of a fall of 3.5% to growth of 0.2%.

The NESDB forecasts Thailand’s economy will expand 3.0% to 4.0% in 2016 on the back of an expected acceleration in state investment and fiscal spending as well as the impact of the government’s recently introduced economic stimulus measures and the likely recovery of the global economy.

The government’s economic planning agency doesn’t give an official annualized growth rate on a quarterly basis.

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