Thai third-quarter GDP shrinks 6.4% year-on-year, less than expected

BANGKOK -- Thailand’s economy contracted less than expected in the third quarter, a sharp recovery from the prior quarter as domestic activity rebounded after coronavirus curbs were eased, leading the government to raise growth estimates for this year.

Southeast Asia’s second-largest economy shrank 6.4% in July-September from a year earlier, official data from the state planning agency showed on Monday, versus an 8.6% decline forecast in a Reuters poll.

On a quarterly basis, the economy expanded a seasonally adjusted 6.5% in the September quarter, the National Economic and Social Development Council said, better than the 3.8% growth forecast by economists.

In the June quarter, GDP contracted a revised 12.1% on the year and a revised 9.9% on the quarter.

The agency now predicts gross domestic product (GDP) to decline 6.0% this year, having previously projected a 7.3%-7.8% contraction.