Thai economy posts brisk 2Q growth

BANGKOK, Aug 20, 2012 (AFP) - Thailand's economy has logged a second straight quarter of solid growth, buoyed by investment to repair factories damaged by last year's devastating floods and strong domestic demand, data showed Monday.

Gross domestic product (GDP) grew 3.3 percent during the April to June period from the previous quarter, when the economy had expanded 11 percent, according to the National Economic and Social Development Board (NESDB).

GDP rose 4.2 percent in the latest quarter compared with a year earlier.

The Thai economy has rebounded sharply after suffering a double-digit contraction in the wake of the kingdom's worst floods in decades.

"The main drivers were increases in private consumption as well as investment in industry zones hit by severe flooding last year," NESDB secretary-general Arkom Termpitayapaisit told reporters.

Household consumption rose strongly as the government's economic stimulus measures lifted spending on durable goods such as cars, the board said.

The months-long floods last year killed hundreds of people and caused widespread damage to Thailand's industrial heartland north of Bangkok.

At their height the floodwaters affected 65 of the country's 77 provinces, deluging hundreds of thousands of homes and disrupting global supply chains.

The NESDB forecasts economic growth of 5.5-6.0 percent for the whole of 2012.

-- (c) Copyright AFP 2012-08-20

I get the feeling the Thai Economy is following the UK and the west into a world of consumer dept!!! GDP figures are misleading. Title Should read consumer dept increased by 20% in 2nd quarter

I get the feeling the Thai Economy is following the UK and the west into a world of consumer dept!!! GDP figures are misleading. Title Should read consumer dept increased by 20% in 2nd quarter

Agree totally watch debt levels carefully, i think that Thailand debt could go the same way as europe over the next cycle. So many unsold units and maybe just hearsay but lots of reposessions going on. Government funded growth?

GDP is a bit of a ridiculous measure when quoted on its own, as it doesn't really tell you what's going on. If population is rising faster than GDP then the country is actually getting poorer on a per capita basis. If population is falling faster than GDP then things are getting better, but GDP on it's own suggests things are getting worse. Also, the government can borrow money and spend it and then that will raise GDP. It's just like borrowing $30K to buy a car and then claiming you are now $30K better off. Actually you're worse off because you have a depreciating asset and also have a large amount of debt. So GDP on it's own is meaningless.

Edited August 21, 201213 yr by davejones