Thailand’s economy expanded faster than expected in the second quarter as exports gained ahead of the imposition of higher US tariffs, helping counter slowing tourism and a generally moribund domestic economy.
Gross domestic product in the three months through June rose 2.8% from a year earlier, the National Economic and Social Development Council said Monday. That exceeded the 2.7% median estimate in a Bloomberg News survey, and compared with a 3.2% pace in the first quarter.
Like other Asian economies, Thailand appears to have benefited from the frontloading of exports ahead of President Donald Trump’s tariffs. The baht was little changed at 32.44 to the US dollar after the data.
“Export of goods continued to grow favourably, while private investment returned to expansion,” the council said in a statement. “Meanwhile, private consumption expenditure, government consumption expenditure, public investment, and export of services decelerated.”
The Southeast Asian nation is bracing for a potentially prolonged bout of economic weakness, thanks to the recently imposed 19% tariff on shipments to the US, its biggest export market. Tourism has also faltered, while sentiment hasn’t been helped by a bout of domestic political instability which has seen the prime minister suspended from office. There were also recent, deadly border clashes with Cambodia.
The Bank of Thailand last week cut the nation’s benchmark rate for the fourth time since October to help support the fragile economy.
The economy grew 0.6% from the first quarter, beating the 0.5% forecast. For the first half of 2025, growth was 3%, and the government tweaked its 2025 forecast to a range of 1.8% to 2.3% from 1.3% to 2.3%.
The nation’s biggest private sector group earlier this month raised its 2025 growth forecast to 1.8%-2.2% after Thailand secured the 19% US levy, which is lower than the earlier threatened 36%. Still, it warned that intense price competition, a strong baht and the slowdown in tourism could weigh on the economy in the second half of the year.
Source: theedgemalaysia