Thailand’s GDP grows in Q4 on government spending

Thailand's GDP grew 0.8% q/q on seasonally adjusted terms in Q4, on par with market expectations and lower than Barclays' forecast of 1.2%. On a yearly basis, the nation's economy was stable at 2.8%, as compared with Q3's data of 2.9%. Despite the growth recorded in Q4, the nation's domestic growth, outside of fiscal spending, is rebounding at a moderate rate. Thailand's manufacturing continues to be weak on slow external demand. Meanwhile, underlying risks are still biased to the downside as severe weather conditions and poor trade weigh on the rural economy.

"2015 growth came in at 2.8%, up from 0.8% in 2014, and we expect growth to accelerate to 3.7% in 2016, as fiscal policy will continue to support activity", says Barclays.