Thailand’s economy grew more than analysts estimated in the first quarter, as the military government’s spending helped counter weak local demand and exports.
GDP expanded 3.2 percent in the three months through March from a year earlier, the National Economic and Social Development Board said in Bangkok on Monday. That compares with the 2.8-percent median estimate in a Bloomberg News survey of 21 analysts. GDP grew 0.9 percent from the previous three months, compared with 0.6-percent median estimate.
Prime Minister Prayuth Chan-Ocha has issued a series of economic stimulus measures worth more than 400 billion baht ($11 billion) since last year to help shore up local demand. The Bank of Thailand last week left its benchmark interest rate unchanged for an eighth straight meeting to help support the economy.
“Robust growth in the tourism sector and high government budget disbursement should still be the main driver of the Thai economy,” said Peerawat Samranchit, an economist at Bangkok-based TMB Bank Pcl., said before the data was released. “Domestic demand remains fragile.”
Thailand’s baht and stocks rose after Southeast Asia’s second-biggest economy expanded more than analysts estimated, spurred by the military government’s increased spending.
The currency climbed 0.1 percent to 35.418 per dollar as of 10:24 a.m. in Bangkok, halting a five-day loss, according to data compiled by Bloomberg. It gained as much as 0.3 percent after the data. The SET Index of shares climbed 0.7 percent, poised for the highest close since April 27.
“The much stronger-than-expected data provides support for the baht,” said Kozo Hasegawa, a Bangkok-based currency trader at Sumitomo Mitsui Banking Corp. “With this data, speculation of a further rate cut is probably fading a bit, however, downside risks to growth remain.” The baht may trade between 35.25 and 35.55 per dollar this week, Hasegawa said. The 10-year bond yield rose one basis point to 1.81 percent and the two year was steady at 1.37 percent.