Thailand’s economy posts strong growth in three months to September
The latest report card for the Thai economy is due out today. It is expected to record a promising 3.8% growth rate for 2017’s third quarter.
That rate would be the best since 2013 and would come on the back of a strong 10% growth in Thai exports over the five months to September, despite the strength of the Thai currency.
The latest figures will likely not capture the full extent of an economic rebound after the year-long mourning period for the Thai King’s passing. Household consumption had trended downwards over the past year to an average of 2.5% growth, compared to 3.5% in 2016. Clothing retailers were hit particularly hard as only black and white clothes sold strongly in line with mourning protocols.
However, investors have cause for optimism that the end of the mourning period will see a revival. The Thai stock exchange commerce index has risen 12%, while government tax breaks and a major $45 billion infrastructure and advanced industry spend is rolling out on the eastern seaboard. Expect growth to lift further in the next year.
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