(Feb 16): Thailand’s economy grew much more than expected in the fourth quarter, supported by a rebound in consumption, investment and government spending.
Gross domestic product (GDP) in the three months through December rose 2.5% from a year earlier, the National Economic and Social Development Council (NESDC) said on Monday. That exceeds the 1.3% median estimate in a Bloomberg News survey and the 1.2% pace in the third quarter.
The economy expanded 1.9% from the previous quarter, marking the largest jump in four years to beat the forecast of 0.6% growth.
The Thai baht strengthened 0.17% against the US dollar in Monday morning trading.
Full-year GDP growth stood at 2.4%, prompting the NESDC to raise its outlook for 2026 economic growth to between 1.5% and 2.5%, from the 1.2% to 2.2% projected earlier.
The latest GDP data should boost Prime Minister Anutin Charnvirakul, whose party secured a stronger-than-expected election result and sealed a coalition deal last week. Anutin has pledged to focus on the economy and cost-of-living pressures, including measures to support households and employment.
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Investment grew 8.1% in the fourth quarter, a sharp increase from 1.4% in the previous three months. Household consumption expanded 3.3%, while government consumption rebounded from a contraction in the third quarter to grow 1.3% from October to December.
Two decades of political instability have turned Thailand from an aspiring economy to a regional laggard beset with stagnant growth, soaring debt, widening inequality and a shrinking workforce. Its annual growth rate of about 2% a year is less than half the pace of Malaysia and Singapore and barely a quarter of the growth in Vietnam.
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