Thailand's Q2 GDP beats forecast as full-year outlook is raised

Business Recorder reported that Thailand's economy expanded 1.9% in the April to June quarter from a year earlier, above the 1.7% median in a Reuters poll. Official data released on Monday showed stronger private investment cushioning softer household spending and a drop in public investment. The National Economic and Social Development Council also lifted its full-year growth range.

The planning agency now expects growth of 2.0% to 2.5% for the whole year, up from its earlier range of 1.5% to 2.5%. It raised its export forecast to a 15.1% rise from 9.6%, while tourist arrivals are still projected at 32 million. Chief Danucha Pichayanan said the third quarter should grow faster than the second, which was hit by the Middle East conflict.

Kobsidthi Silpachai, who leads capital markets research at Kasikornbank, expects the policy rate to stay at 1% over the next 12 months as inflation eased to 1.95% in July. The next central bank policy review is due on August 26. After the data came out, the baht strengthened and Thailand's benchmark index gained 1%.