(fxcue news) - Thailand's economy expanded at the fastest pace in more than a year in the second quarter, underpinned by consumption, exports and tourism but the uncertainty over the digital wallet plan following the leadership change weighs on growth outlook. Gross domestic product grew 2.3 percent on a yearly basis in the second quarter after rising 1.6 percent in the first quarter, data from the Office of the National Economic and Social Development Council showed on Monday. GDP posted its biggest growth since the first quarter of 2023 and also exceeded economists' forecast of 2.1 percent. However, quarter-on-quarter, GDP advanced at a slower pace of0.8 percent following the 1.2 percent expansion seen in the prior quarter. Economists had forecast a quarterly growth of 0.9 percent. The expenditure-side of GDP showed that government consumption gained 0.3 percent annually, reversing a 2.1 percent contraction in the previous quarter, as social transfers in kind for goods and services surged 6.9 percent. At the same time, private spending moved up 4.0 percent but slower than the 6.9 percent expansion a quarter ago. Meanwhile, total investment contracted for the third straight quarter by 6.2 percent. Private and public investment slid 6.8 percent and 4.3 percent, respectively. Regarding foreign trade, exports rebounded 4.5 percent after a 1.1 percent decrease. At the same time, imports were up 1.2 percent, yet slowing from 3.3 percent in the prior quarter. Consequently, the trade balance recorded a surplus of $5.5 billion compared to $1.6 billion in the first quarter. In the first half of 2024, the economy posted an expansion of 1.9 percent. The government forecast growth in the range of 2.3 percent - 2.8 percent this year. Headline inflation is estimated to be in the range of 0.4 - 0.9 percent in 2024. Capital Economics' economist Shivaan Tandon said the economy is set to decelerate a bit further in the coming quarters as the boost from tourism fades and with uncertainty around fiscal policy elevated, risks to the already downbeat outlook are skewed to the downside. The Bank of Thailand is set to announce its monetary policy decision August 21. The interest rate is expected to be left unchanged at 2.50 percent.