By Tim D’Ambrosio, Business Insider staff writerThailand’s economy grew 3% in the April-June quarter, with growth in construction, tourism and agriculture contributing to the rebound.
However, the government has not kept its promise of lifting the country out of a deep recession, as the country has faced sharp falls in the price of its currency and other imports.
The economy contracted by 0.2%, or 0.1%, to GDP of NT$10.39 trillion ($1.9 trillion), according to the National Bureau of Statistics.
That is roughly half of the 2.2 trillion-yen benchmark that is used to calculate the central bank’s official inflation target.
The contraction in growth came despite a sharp decline in the number of people living in poverty in the last year, as well as a rebound in construction output, which fell by 6.5% from a year ago.
Thailand is expected to report a second quarter growth rate of 2.8%, according to a survey released Tuesday by Nomura Securities.
Economists say Thailand’s economy is now recovering from a major economic downturn.
The country has been in a deep slump since 2014, when the government imposed a one-year moratorium on issuing currency, which led to widespread shortages of basic goods such as rice and wheat.
The government has blamed a collapse in the value of the Thai baht, which has been devalued against the US dollar since the beginning of 2017, and foreign exchange mispricing by foreign investors.
But the country’s central bank said last week that its interest rate on Thai bahs had increased to a level that it believed could keep inflation from increasing too quickly.
The Reserve Bank of Thailand said in April that the bahts rate would stay at its current level for a year, which could lead to a “negative” inflation outlook.
Thai Finance Minister Prawit Wongsuwan said on Tuesday that he expected Thailand’s growth to grow by 3.4% in 2017, in line with estimates by Nomada.
The growth estimate was based on data for the second quarter of 2017 and the first quarter of 2018, according to Nomada data.