Thailand Avoids Recession Expands 0.9% After Coup

Thailand’s economy avoided a technical recession in the second quarter, suggesting the country may be back on the path to growth following a military coup in May.

Gross domestic product (GDP) expanded by 0.9% in the three months to June, compared with the previous quarter.

On an annual basis, the Thai economy grew by 0.4% from a year earlier.

Months of political turmoil before the coup caused a drop in exports, foreign investment and tourism.

Krystal Tan from Capital Economics said the coup helped calm political unrest and boost confidence in the economy.

“Growth is set to pick up further in the coming quarters, but it will take time for the recovery to gain a firmer footing,” she said.

“The junta has made spurring the Thai economy one of its top priorities since coming to power. For instance, its moves to delay tax hikes, accelerate budget disbursements and clear the way for investment approvals to resume should help support domestic demand.”

Thailand’s National Economic and Social Development Board, which compiles the growth data, also released revisions to its first quarter figures.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza