Thai baht slumps to 1-year low, stocks decline on recession

Thailand’s baht slumped to a one-year low and stocks dropped after Southeast Asia’s second-largest economy entered a recession for the first time since 2009. Government bonds were little changed. Gross domestic product unexpectedly decreased 0.3 % in the three months through June from the previous quarter, when it contracted a revised 1.7 %, the National Economic & Social Development Board said yesterday. The agency cut its 2013 expansion forecast to 3.8 % to 4.3 % from 4.2 % to 5.2 %. The cost to insure Thai bonds against default using five-year credit-default swaps climbed eight basis points to 128 basis points yesterday, the highest level since July 4, according to data provider CMA.