Thailand skirts recession with 0.9 per cent Q2 growth

Thailand's economy grew 0.9 per cent in the second quarter, dodging recession after the military ended months of political deadlock with a coup and promised to unshackle spending. The junta, under coup-leading Army Chief Prayut Chan-O-Cha, has pegged its legitimacy to improving the economy after months of political protests froze government spending, scared off tourists and battered consumer spending. Between April and June the economy crept back to life with 0.9 per cent growth after shrinking a revised 1.9 per cent in the preceding three months, the National Economic and Social Development Board reported. On a year-on-year basis, the economy grew 0.4 per cent, NESDB said. Since seizing power on May 22, Prayut has opened the coffers -- pledging to kick-start stalled investment projects, including major train and road links, and paying state debts to rice farmers to help spur agriculture. Despite the positive momentum, Southeast Asia's second largest economy still looks set for a disappointing year.  The board clipped its growth outlook for 2014, forecasting 1.5-2.0 per cent expansion, down from a previous estimate of 1.5-2.5 per cent. It said the political turmoil of the first five months of 2014 would likely drag the economy to ‘perform below its potential’ over the full year, with key auto and tourism sectors still flagging. Visitor numbers to Thailand are down just over 12 per cent year-on-year, despite desperate efforts to reassure tourists that the 'Land of Smiles' is safe, according to AFP.