Thailand’s First-Quarter Growth Exceeded Expectations

Thailand beat the forecasts. The Kingdom registered 3.1 percent growth during the first quarter compared to the same period last year, exceeding the projections of most economists, as businesses front-loaded orders to stay a step ahead of an expected increase in tariffs.

The Nation newspaper called the results “solid.” The paper said the figures showed that the Thai economy is maintaining its momentum, with Gross Domestic Product (GDP) increasing by 0.7 percent over the last quarter of last year.

Nonetheless, officials from the National Economic and Social Development Council (NESDC), the Kingdom’s State Planning Agency, urged caution because of global economic uncertainty. Thailand is an export-oriented economy, and the trade landscape is becoming increasingly volatile and unpredictable.

The State Planning Agency advises businesses and the public to be prudent with finances despite encouraging first-quarter GDP growth, The Nation reported.

Many Economists have said they expect the economy to slow along with global trends as the year progresses. While overall growth was positive in the first quarter, the economy’s performance was mixed. Some areas registered robust results, while others showed more tepid trends.

“Export of goods and public investment expanded favourably. Private consumption and government consumption expenditure decelerated,” the NESDC said in a press release.

Consumers and Government Agencies have been taking a tentative approach to spending because of frequent headlines about possible trade wars that might affect Thailand and the region.

“A detailed look at the data showed that the 2.0 percent quarter-on-quarter growth in exports remained        a strong point for the Thai economy,” wrote the Investing.com website.

“In the short term, it is expected that export growth will continue to be solid, as companies rush to ship products to the United States before the possible introduction of product-specific tariffs on electronics,” the website wrote.