Bangkok Q2 2021
The challenge of Covid-19 crisis is decelerating the Thai property market
• According to the National Economic and Social Development Council (NESDC), the Thai economy had a contraction of 2.6 per cent in Q1, improving from a 4.2 per cent decrease in Q4 2020. Main supporting factors for the improvement in GDP included: 1) the increase in domestic investment 2) the increase in agricultural production 3) the rise in government consumption expenditure and 4) the improvement in exports of goods.
• Private consumption expenditure decreased by 0.5 per cent, compared to a 0.9 per cent increase in Q4 2020. This contraction mainly attributed to the impact of the new wave of the Covid-19 outbreak. Government consumption expenditure increased by 2.1 per cent in Q1 as compared with a 2.2 per cent increase in Q4 2020.
• Private investment increased by 3.0 per cent, improving from a 3.3 per
cent decrease in Q4 2020. This improvement followed a positive growth of
investment in machinery and equipment. The continual expansion of government expenditure accelerated public investment to grow at 19.6 per cent, increasing from a 0.6 per cent growth in Q4 2020.