Thailand GDP to inch higher to 1.8%-2%

But private consumption will continue to be sluggish as flood-related spending fades.

According to Moody's Analytics-Asia Pacific Review, Thailand’s growth likely slowed sharply on a q/q basis, but a low base effect lifts the y/y rate. Real GDP likely grew 1.8% q/q and 2% y/y in the second quarter after the first quarter’s 11% q/q and 0.3% y/y rises. Private consumption slowed as the boost from flood‐related spending faded.

"Trade likely failed to contribute to growth; strong global demand for autos lifted exports, but imports also gained as firms increased machinery and equipment purchases for reconstruction. The key area of strength was private and public investment, which strengthened on the back of reconstruction."

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