The strength and resilience of Thailand’s economy continues to be reflected in the data, beginning with its 12% growth in gross domestic product during the first quarter of 2010. That was the best rate of growth in about 15 years, nearly three times better than Q1 2009, and about double the preceding quarter. It is estimated that GDP growth for the first half of 2010 will be approximately 10%. Thailand Business News
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Thailand’s First half 2010 GDP Growth reaches 10%
Domestic demand has also shown signs of life, but the severe weather, the withdrawal of consumption-based fiscal stimulus and political uncertainty should be a drag on growth. With a large fraction of the population still occupied in agriculture or working in rural areas, agriculture is a critical variable for the performance of household consumption.
All in all, a more favorable external environment should help boost real GDP growth to 6.2 percent in 2010. After this year, slower growth in developed countries, emerging capacity constraints as capacity idled during the crisis is quickly put to use, and the weight of the ongoing political turmoil on new investment, should likely keep growth below Thailand’s historical average of 5.1 percent. On the whole, Thailand’s fiscal and financial picture remains solid
In any case, Thailand’s strong rally in 2009 should still be considered in context.
So small free floats and poor disclosure tend to create a vicious cycle,’’ Mr Wood said.
