BANGKOK -- Thailand's gross domestic product grew 7.5%, year on year, during the three months to June, its first expansion in six quarters, Thai government's economic planning agency said Monday, although the outlook remains grim due to the outbreak of the delta variant.
The growth largely reflects a rebound from last year's sharp decline. During the entire second quarter, Thailand battled a third wave of the pandemic. But until late June, Prime Minister Prayuth Chan-ocha's government did not resort to strict lockdown measures, such as banning people from dining at restaurants. That was in contrast to the previous year, when lockdowns were in place from the beginning of the quarter and were gradually lifted over the following months.
The recovery of the global economy also contributed to Thailand's growth. Exports grew 36.2% from the same quarter a year earlier.
However, the outlook for the economy is poor. The third wave of COVID-19 has forced the reimposition of stringent lockdowns in the provinces, including a nighttime curfew. This will dampen spending by consumers and foreign tourists.
The economic planning agency cut its forecast for this year. It now expects the Thai economy to grow by 0.7-1.2%, down from 1.5% to 2.5% it predicted three months ago. This is the agency's third downward revision.
The forecast was in line with those of other public authorities and private institutions. The Bank of Thailand lowered its 2021 growth forecast for Southeast Asia's second-largest economy from 1.8% to 0.7% in a policy statement released after a meeting of the Monetary Policy Committee on Aug. 4. For 2022, the central bank expects 3.7% growth, down from its earlier prediction of 3.9% growth. Some private economists see a higher risk of contraction.