Thailand’s economy expanded at a slower pace than forecast, as a slump in exports and a political impasse weighed on the Southeast Asian nation.
Gross domestic product in the three months through June rose 1.8% from a year earlier, the National Economic and Social Development Council said Monday. That compares with the 3% median estimate in a Bloomberg survey and the initial 2.7% print in the first quarter.
The economy expanded 0.2% quarter-on-quarter, against a median estimate of a 1.2% growth.
The slower print may prompt the Bank of Thailand to halt its monetary policy tightening to preserve the tourism-induced momentum in the economy. That will be key to supporting growth, given a slump in exports and the absence of a government more than three months after elections are clouding the outlook.
The delay in government formation risks stalling policymaking, including finalizing the spending plan for the new fiscal year starting Oct. 1.
Thailand’s parliament is scheduled to convene Tuesday to elect a prime minister. The majority of lawmakers previously blocked the general election-winner Move Forward party’s Pita Limjaroenrat from becoming prime minister.
Pheu Thai, which is backed by Thaksin Shinawatra, is set to nominate tycooon Srettha Thavisin for premiership.
--With assistance from Tomoko Sato and Pathom Sangwongwanich.
