22 Aug '11, 6am

Thai economy shrinks as exports lose steam

BANGKOK: Thailand's economy contracted 0.2 percent in the second quarter as parts shortages caused by Japan's massive earthquake led to a sharp slowdown in exports, government data showed Monday. On a year-on-year basis, economic growth weakened to 2.6 percent, from a revised figure of 3.2 percent in the first quarter, the National Economic and Social Development Board (NESDB) reported. "The slower growth in the second quarter was due to a contraction in the industrial sector because of the earthquake and tsunami in Japan, while total investment slowed," said NESDB secretary-general Arkom Termpitayapaisit. Gross domestic product (GDP) had expanded by 2.0 percent in first quarter from the previous three-month period -- the quickest pace in a year. Export growth slowed to 19.2 percent in the second quarter, from 27.4 percent growth in the first. Japan's March 11 twin natural...

Full article: http://www.channelnewsasia.com/stories/afp_asiapacific_bu...

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