BANGKOK Q4 2020
Property markets muted amid viral outbreak, but government stimulus anticipated tolift sentiments in H2 2021
• The National Economic and Social Development Figure 1: GDP growth
Council (NESDC) reported that the Thai economy in Q3
declined by 6.4 per cent, improving from a 12.1 per
cent contraction in Q2 (Figure 1). The improvement
was due to the easing in lockdown measures and
domestic travel restrictions resulting in a softer decline
in private consumption, private investment and export
• Private consumption expenditure decreased by 0.6 per
cent, improving from a 6.8 per cent contraction in Q2.
Additionally, the implementation of various fiscal stimulus
and easing of interest rates also resulted in the recovery
of economic activity and domestic consumption.
• Government consumption expenditure grew by 3.4 per
cent, improving from 1.3 per cent growth in Q2. The
increase was mainly contributed by an expansion of
social transfers in kind-purchased market production.
• According to the NESDC, public investment expanded
by 18.5 per cent due to the increase in government
capital investment and State-Owned Enterprises
(SOEs) investment by 29.5 per cent and 0.9 per cent
respectively. The disbursement rate of the capital
budget in Q3 was 30.8 per cent of the total budget
compared with 19.2 per cent in Q2 and 21.6 per cent
in the same quarter last year.
• Private investment decreased by 10.7 per cent,
compared with a decrease of 15.0 per cent in Q2,
attributed to the slower contraction in machinery and
equipment investment as compared to Q2.
• The recovery of trading partners’ economies and the
expansion of some export products benefiting from
the pandemic resulted in a slower contraction in the
export value. In Q3, it contracted by 8.2 per cent
compared to 17.8 per cent in Q2.
• In October 2020, the government introduced a copayment
scheme, where the state subsidized 50 per
cent of food, drink and general goods purchases totaling
up to THB150 per person per day, capped at THB3,000
per person for the duration of the scheme (23 October
2020 to 31 December 2020). The co-payment scheme
was rolled out for 10 million participants to stimulate
consumer spending affected by the pandemic crisis.
The scheme was well-received by both consumers and