Private consumption contracted 3.0 percent year-on-year, due to a fall in expenditure on durable goods, especially on domestic car sales which declined rapidly due to a high base in the first quarter of 2013 when large amounts of car were delivered under the first-car-buyer scheme.
Total investment declined 9.8 percent. Private investment contracted by 7.3 percent, mainly due to declines in machinery and equipment and construction investment. Similarly, public investment contracted by 19.3 percent following a reduced disbursement in government investment budget.
Government consumption expenditure increased by 2.9 percent owing to a rise in expenditure on salaries and wages. However, expenditure on public utilities declined, hurt by a temporary closure of some government agencies in Bangkok area amid the political turmoil.
Exports fell 0.4 percent while imports shrank at a faster 8.5 percent.
On a quarter-over-quarter basis, the GDP fell 2.1 percent following a 0.1 percent rise in the fourth quarter of 2013. The Q1 data showed that prolonged political uncertainties continue to hurt domestic demand, investment, business confidence and tourism. The state planning agency cut its 2014 GDP growth forecast to 1.5 percent to 2.5 percent from 3 percent to 4 percent.