Thailand’s GDP shrank more slowly in Q3

The country’s second-quarter slump was the sharpest fall in over two decades, according to data from the National Economic and Social Development Council (NESDC). 

The slower contraction was attributed to the recovery in domestic activity after the pandemic restrictions were eased in addition to the stimulus measures for the manufacturing and service sectors. 

Manufacturing continued to shrink but at a slower rate of 5.3% in the third quarter, following a 14.6% decline in the previous quarter. Construction had a stronger growth of 10.5% from the 7.4% in the second quarter. 

COVID-19 continued to weigh down consumption, the tourism sector and private capital expenditures, the data showed. 

READ: Thailand records biggest economic contraction in more than 20 years

Private consumption, accounting for about half of the local economy, fell 0.6% year-on-year. The export of goods and services declined 23.5% and imports dropped 20%. Government spending was up 3.4%, public capital investment increased 18.5%, while private capital expenditure declined 11%. 

The government is expecting the economy to contract 6.0% this year, versus the 7.3%-7.8% shrinkage it forecast earlier.