Thailand’s economy suffered a larger contraction than most economists expected in the first quarter of 2014, due in large part to a political crisis that has restrained government investment and dampened both consumer and business confidence.
First-quarter gross domestic product contracted 0.6% from a year earlier, the National Economic and Social Development Board said Monday. Economists polled by The Wall Street Journal expected, on average, a first-quarter contraction of 0.22% from a year earlier.
“The contraction of the Thai economy in the first quarter was due primarily to the contraction in domestic demand,” the government statement said. “The government budget disbursement rate was lower than targeted and the contribution of export was insufficient to outweigh the reduction of domestic demand.”