Thailand GDP Expands In Q4

(RTTNews) - Thailand's economy expanded as expected in the fourth quarter of 2015 on government spending and investment amid a decline in exports. Despite an acceleration of growth during the year, the government trimmed its growth forecast on weaker export outlook.

Gross domestic product climbed 2.8 percent on a yearly basis, in line with expectations, but slower than third quarter's 2.9 percent expansion, figures from the National Economic and Social Development Board showed Monday.

Quarter-on-quarter, GDP gained 0.8 percent after a 1 percent growth posted in the preceding quarter.

The Southeast Asia's second-largest economy expanded 2.8 percent in 2015, much better than the 0.8 percent growth seen in 2014. Nonetheless, the government downgraded its growth outlook for 2016 to 2.8-3.8 percent from 3-4 percent projected previously. While fiscal spending should help prop up the economy in 2016, the pace of the recovery will be gradual, given the backdrop of continued political uncertainty and high household debt, Krystal Tan an economist at Capital Economics, said.

The expenditure side of GDP showed an improvement in both private and government spending growth. Private consumption expenditure advanced 2.5 percent annually and government final consumption expenditure rose 4.8 percent.

Gross fixed capital formation recovered in the fourth quarter, up 9.4 percent versus a 2.6 percent drop a quarter ago.

Nonetheless, the exports of goods and services declined 3.5 percent due to the slowdown of the global economy. Meanwhile, imports of goods and services decreased 1.3 percent.

On the production side, agriculture output contracted 3.4 percent, but slower than the 5.5 percent decrease in the previous quarter. Meanwhile, non-farm growth accelerated to 4.2 percent from 3.2 percent.

Manufacturing output climbed 0.8 percent as a result of higher growth of the raw material industry. Mining and quarrying grew 3.7 percent and construction surged 23.9 percent.