Thai Q2 GDP grows 1.3% q-o-q above forecast

[BANGKOK] Thailand's economy grew faster than expected in the second quarter from the first, thanks to stronger exports and tourism in a sign the recovery is gaining momentum.

The economy expanded 1.3 per cent in the June quarter from the prior period, on a seasonally adjusted basis, topping the 1.0 per cent growth forecast by economists in a Reuters poll.

That matched the first quarter's pace, which was the fastest in four years.

From a year earlier, the economy grew 3.7 per cent in April-June, the highest rate in 17 quarters, the National Economic and Social Development Board said on Monday, compared with 3.2 per cent in the poll.

In the March quarter, annual growth was 3.3 per cent.

Growth in Southeast Asia's second-largest economy has lagged other regional peers for years. The military government has ramped up spending in a bid to boost domestic activity but large infrastructure projects have been slow taking off.

So growth has been reliant on a recovery in exports and tourism, but the economy faces risks from rising trade protectionism, a cooling China and a strong baht currency.

REUTERS