BoT says there’s no economic recession

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BANGKOK, Aug 19 — The Bank of Thailand (BoT) has asserted that the Thai economy is picking up and has not experienced any recession.

BoT spokesman Chirathep Senivongs Na Ayudhya said that the Thai economy grew by 0.4 per cent year-on-year in the second quarter this year and that it also performed better than in the previous quarter due to clarity regarding the political situation and government policies later in the second quarter.

Under the circumstances, consumption increased in both government and private sectors and confidence rose.

The Thai economy in the second quarter expanded by 0.9 per cent compared with the first quarter when the gross domestic product had shrunk by 1.9 per cent.

Mr Chirathep said that the Thai economy did not technically enter recession because the GDP did not fall for two quarters in a row.

Thailand’s GDP in the first half of 2014 fell by 0.1 per cent year-on-year and that was better than the BOT’s previously expected decline of 0.5 per cent.

The economy improved more than expected in the second quarter and the money market reacted positively yesterday, Mr Chirathep said.

The BoT will continue monitoring spending in the private and the government sectors, he said.