Thai growth slows in 3rd qtr; 4th qtr clouded by king's death

Thailand’s economic growth slowed in the third quarter, data showed Monday, with fears of further pain to come in a nation plunged into mourning following the death of its long-serving King Bhumibol Adulyadej.

High household debt, weakening exports, slumping foreign investment and low consumer confidence have cramped growth in what for years was Southeast Asia’s flagship economy.

A military junta seized power in 2014 vowing to end years of political instability and kickstart the lackluster economy.

The economy has since picked up slightly, mainly on the back of ramped-up government spending and tourist arrivals, but it remains comparatively low compared with its neighbours.

The National Economic and Social Development Board (NESDB) said Monday the economy expanded 3.2 percent year-on-year in July-September, missing estimates and also down from 3.5 percent in the previous quarter.

Seasonally adjusted quarter-on-quarter growth was 0.6 percent, down from a revised 0.7 percent in the three months prior.

The dip will do little to raise hopes of a final quarter bump for Thailand as it approaches peak tourist season.

King Bhumibol’s death on Oct. 13 after a seven-decade reign has left politically divided Thailand without a rare pillar of unity.

The arch-royalist generals ordered an initial monthlong mourning period where entertainment and festivities were either halted entirely or told to tone down. The official mourning period will last a full year.

Analysts said the king’s death would likely hit final quarter growth, particularly in the country’s entertainment sector, while political uncertainty will remain an issue.

(AFP-JIJI)