Falls in investment and household consumption have dragged down economic growth in Thailand, one of southeast Asia's bellwether economies, as high state spending and a rebound in exports prevented an even steeper decline.
Year-on-year gross domestic product growth slowed from 2.9% in the second quarter to 2.7% between July and September, although an upward revision of first-quarter figures helped cushion the blow, according to (The Financial Times).
While the government numbers suggest the Thai economy has lifted itself out of its technical mini-recession earlier this year, they also underline why some investors are nervous about possible foreign capital flight once the US Federal Reserve cuts its international bond-buying programme.
Barclays raised its forecast for Thai growth this year from 2.5% to 3%, but lowered its projection for 2014 from 5.3% to 4.8%, noting: "In terms of the details, the report does not inspire confidence."
The government's National Economic and Social Board blamed the slowing growth on declining domestic demand, which in turn reflects the administration's efforts to put a brake on consumer spending amid concern about rising household debt levels.