Thai Economy in Second Quarter 2010

The Thai economy in 2Q 2010 increased by 9.1% compared to a rise of 12.0% in previous quarter, resulting from that domestic demand expansion comprising household consumption expenditure grew by 6.5%, mainly driven by higher expenditures on durable goods such as vehicles, and electrical appliances in line with higher farm income of major crops, as well as slowdown in inflation rate. Overall investment increased by 12.2%, originating from private investment expansion whereas public investment contracted as a result of a reduction of state enterprise. Government consumption expenditure increased by 6.3% due partly to the budget disbursement under the Thai Khem Kaeng scheme. In addition, net exports of goods and services expanded as a result of a 28.3% rise of exports of goods whereas imports of goods decelerated by 30.2%.