The Thai government’s PR department released a sanguine report on Thailand’s Q2 GDP data yesterday, glossing over the economic impact of the violent protests that flared up in April and May:
Thailand’s gross domestic product (GDP) in the second quarter of this year has expanded by 9.1%, setting the highest record of half-year figure in 13 years, according to the National Economic and Social Development Board (NESDB).
Source: “Half-year GDP hits 13-yrs highest“, National News Bureau of Thailand
A look at the data reveals however that real GDP actually contracted in Q2 2010 by 5.6%, not seasonally adjusted. The 9.1% growth reported by the National News Bureau refers to year-over-year growth. By this metric, Thailand’s expansion is really nothing surprising considering GDP rose from a very low base formed after the deepest contraction since the 1997-98 financial crisis. When the bar is set low, it’s quite easy to jump the bar. What’s more striking is, Thailand failed to even meet that bar in some respects: