Economy grew faster than forecast at 3.7% last quarter

Shipping containers stand at a port in Bangkok, March 30, 2015. (Reuters photo)

Thailand’s economy grew at a faster pace than economists forecast last quarter, buoyed by tourism and exports.

Gross domestic product rose 3.7% in the second quarter from a year ago after expanding 3.3% in the first quarter, the National Economic and Social Development Board said on Monday

The median estimate of 21 economists surveyed by Bloomberg was for growth of 3.2%

GDP rose a seasonally adjusted 1.3% in the second quarter compared with the previous three months, higher than the 1% median estimate in a Bloomberg survey

The National Economic and Social Development Board also said it expects exports to rise 5.7% this year, up from the 3.6% growth projected in May.

The Bank of Thailand last month forecast 2017 economic growth of 3.5%, and exports growth of 5%.

Analysts polled by Reuters predicted that Southeast Asia's second-largest economy will expand 3.4% this year.

The economy grew 3.2% last year.

Thailand’s growth outlook has strengthened this year on the back of a recovery in global trade, but the economy’s performance still lags peers in Southeast Asia.

More than three years after a military coup, political uncertainty continues to curb the private sector’s appetite to invest.

At the same time, authorities are struggling to cap gains in the currency after it surged 7.9% against the dollar this year, undermining export competitiveness.

The Bank of Thailand, which has kept its benchmark interest rate unchanged at 1.5% for more than two years, said last week the currency’s strength may hurt businesses.