Thailand Q3 economy contracts 0.3% on year amid COVID-19 battle

Author: Pearl Bantillo


SINGAPORE (ICIS)--Thailand’s economy posted a 0.3% year-on-year contraction in the third quarter, reversing the 7.6% growth in the previous three months, as the southeast Asian country grappled with surging COVID-19 cases.

On a quarter-on-quarter seasonally adjusted basis, the decline was steeper at 1.1%, according to data from the country’s Office of the National Economic and Social Development Council (NESDC).

On a year-on-year basis, production in the industrial sector fell 2.0% in the third quarter, coming from a 14.2% expansion in the previous quarter, while that of the services sector inched up 0.2%, a sharp deceleration from the 5.1% growth posted in the June quarter.

Manufacturing fell 1.4% year on year from a 16.9% expansion in the previous quarter; while construction declined 4.1%, reversing the 3.9% increase in the previous three months.

Its raw material industry posted a 0.3% contraction, in contrast with a 10.3% growth in the previous quarter, due “to reductions in refined petroleum products, non-metallic products, and fabricated metal products and slowdowns of paper, chemicals and chemical products, rubber and plastic products, and basic metal”, NESDC stated.

Agricultural production grew stronger at 4.3% year on year, accelerating from the 1.9% growth recorded in the previous quarter.

September-quarter exports of goods and services grew by 12.3% and 27.8%.

Thailand’s GDP growth in the first nine months of 2021 stood at 1.3%.

Visit the ICIS Coronavirus topic page for analysis of the impact on chemical markets and links to latest news.