Thailand’s economy grows for second consecutive quarter

Thailand, which is south-east Asia’s second largest economy, has grown for a second consecutive quarter, according to official figures.

The Thai economy grew by 1.3% in the third quarter from the second quarter when the economy grew by 2.2%, meaning the economy has officially exited recession.

However, the 1.3% was far less than the growth of 2.3%, which economists had expected.

The economy has been boosted by manufacturing, which grew by 2.6% in the July to September period, according figures from the National Economic and Social Development Board (NESDB).

Not only has the economy been hit hard by the global downturn, it was also hit by the political instability at the end of last year.

The NESDB comments: “The economy in the fourth quarter should be positive, boosted by improved exports, tourism, consumption and government spending.”

However, while many analysts are positive about the future of Thai economy, many warn that the political unrest could hinder a recovery.

Usara Wilaipich at Standard Chartered comments: “Looking forward, the outlook remains uncertain, given concerns about the ongoing political instability.”

Thailand’s Prime Minister, Abhisit Vejjajiva, recently expressed his confidence about the economy and expects 3.5% growth next year, after a contraction of between 3% and 3.5% this year.

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