Thailand's Q4 GDP contracts 4.2% y-o-y, less than expected

[BANGKOK] Thailand's economy shrank less than expected in the final quarter of the year as domestic activity and exports recovered after coronavirus curbs were eased, but a travel ban imposed since April has kept most foreign visitors away.

Southeast Asia's second-largest economy contracted 4.2 per cent in the December quarter from a year earlier, data from the National Economic and Social Development Council showed on Monday, versus a forecast 5.4 per cent drop in a Reuters poll.

On a quarterly basis, gross domestic product (GDP) expanded a seasonally adjusted 1.3 per cent in the December quarter, better than the 0.8 per cent growth forecast by economists.

In July-September, GDP declined 6.4 per cent from a year earlier but grew a revised 6.2 per cent against the prior quarter.

In 2020, the economy contracted 6.1 per cent, the sharpest fall since 1998, and compared with analysts' forecast of a 6.4 per cent drop.

The agency now predicts GDP will expand 2.5-3.5 per cent this year, having previously forecast growth of 3.5-4.5 per cent, after a fresh Covid-19 outbreak hit the economy in December.

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REUTERS