International News

BANGKOK, (MILLAT+APP/AFP) – 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 lacklustre 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 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 13 October after a seven-decade reign has
left politically divided Thailand without a rare pillar of unity.
The arch-royalist generals ordered an initial month-long 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.
“Although calm has prevailed since the death of the king last month,
the political situation remains highly uncertain, and this will continue to hang over the outlook for private investment,” Krystal Tan, at Capital Economics said in a briefing note.