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Thailand’s economy grows more than forecast in second quarter

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Thailand's economy grew more than forecast in the second quarter, underpinned by solid export and investment gains.

[BANGKOK] Thailand's economy grew more than forecast in the second quarter, underpinned by solid export and investment gains.

Thailand's recovery is continuing on the back of solid export demand and tourism, prompting the government and economists to upgrade their forecasts this year. There are mounting global risks though as trade tensions between the US and China threaten to disrupt regional supply chains and investors flee emerging markets.

The Bank of Thailand is watching the GDP (gross domestic product) figures closely to determine how soon it can follow counterparts in South-east Asia in raising interest rates. Subdued inflation and strong currency buffers have enabled policy makers to hold off on tightening this year.

But Don Nakornthab, the central bank's senior director in charge of the economic and policy department, said last month that growth of 4.5 per cent or more in the second quarter could boost the odds of a rate increase.

BLOOMBERG

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