Thai Economy Shrinks At Slower Pace In Q3

By Linda Khoo Hui Li BANGKOK, Nov 16 (Bernama) -- Thailand’s economy contracted at a slower pace in the third quarter (Q3) of this year as a result of improvements in total exports of goods and services, private investment and private final consumption expenditure.\ Data released Monday by state planning agency National Economic and Social Development Council (NESDC) showed that the country’s gross domestic product (GDP) shrank by 6.4 per cent, recovering from a fall of 12.1 in Q2 -- the sharpest fall in more than two decades. On a seasonally adjusted quarterly basis, the economy increased by 6.5 per cent for the three months ended in September. Thailand’s cumulative nine-month GDP declined by 6.7 per cent, in contrast to a rise of 2.7 per cent in the previous year. The planning agency said export value in Q3 stood at US$57.99 billion (US$1=RM4.11), falling 8.2 per cent and improving from a 17.8 per cent contraction in the previous quarter due to the recovery of trading partners’ economies and the expansion of some export products benefiting from the COVID-19 pandemic. It said import value in Q3 stood at US$45.294 billion, decreasing 17.8 per cent and improving from a 23.4 per cent contraction in the previous quarter. The contraction is pinned against slower economic activities than the same period last year. NESDC added that total investment in Q3 dropped by 2.4 per cent, recovering from an eight per cent contraction in the previous quarter, while private investment decreased by 10.7 per cent, compared with a decline of 15 per cent in Q2. It said public investment expanded by 18.5 per cent as a consequence of increased government capital investment and state-owned enterprises investment by 29.5 per cent and 0.9 per cent, respectively. Meanwhile, the economic planning agency also upgraded its 2020 outlook to a 6.0 per cent shrinkage from previous forecast contraction between 7.3 per cent and 7.8 per cent. It projected that exports would decrease by 7.5 per cent this year while private consumption expenditure and total investment are expected to contract by 0.9 per cent and 3.2 per cent, respectively. Headline inflation is estimated to decline by 0.9 per cent and the current account is projected to record a surplus of 2.8 per cent of GDP. NESDC expects the Thai economy to expand between 3.5 per cent and 4.5 per cent in 2021, mainly supported by the improving domestic demand, the recovery of the global economy and global trade, and the government’s budget disbursement and economic stimulus measures. In May, the Bank of Thailand slashed its policy rate to a record low of 0.5 per cent to help soften the economic impact of the pandemic. The central bank is scheduled to hold a monetary policy meeting on Wednesday. -- BERNAMA