Thailand posts lower than expected second quarter growth

BANGKOK: Thailand registered lower than expected economic growth of 1.8 percent in the second quarter, official data released Monday showed.

Officials blamed a slowdown in exports, which fell 5.7 percent year-on-year, for the weak pace.

The Office of the National Economic and Social Development Council (NESDC) cut its forecast for 2023 to between 2.5 and 3 percent, citing poor global conditions.

“The growth in the second quarter is lower than expected due to the slowdown of exports which fell for three quarters respectively since last year,” said Danucha Pichayanan, secretary-general of the NESDC.

Output from manufacturing fell 3.3 percent and government spending also dropped 4.3 percent, the data showed.

The kingdom is stuck in a political deadlock three months after a national election, with no prime minister able to form a government.

Danucha sought to calm investors’ fears of looming instability, noting political demonstrations so far have been small and peaceful.

Just three years ago violent street protests brought capital the Bangkok to a standstill for months.

“If the transition (of government) runs smoothly, investors will be confident and come to invest,” he told reporters.

The figures were released ahead of a key vote in Thailand’s parliament due Tuesday that could see the deadlock broken, and a new prime minister finally elected.