The decline followed a blistering year-long recovery from devastating floods in late 2011 that hit major factories north of the capital Bangkok and caused a double-digit drop in gross domestic product (GDP).
On a year-on-year basis, GDP expanded by 5.3 per cent in the first quarter of 2013, the government’s National Economic and Social Development Board (NESDB) reported.
That marked a sharp slowdown from the fourth quarter of 2012, when growth hit a record high of 19.1 per cent, according to an updated estimate.
“The main drivers were domestic consumption and tourism,” NESDB secretary general Arkhom Termpittayapaisith said of the most recent quarter.
Growth in those sectors helped to offset a 5.9 per cent quarter-on-quarter slump in manufacturing, which had expanded rapidly last year, helped by a government scheme to encourage people to buy new cars.
Consumer confidence remains buoyant, while the hike in the minimum wage at the start of this year should support spending,” he added.
The NESDB reduced its forecasts for 2013 economic growth to 4.2-5.2 per cent, from a previous projection of 4.5-5.5 per cent, because of the weaker-than-expected first quarter performance.