21-8-2023 (BANGKOK) Thailand’s economic growth in the second quarter fell short of expectations, according to data released on Monday. The resilience of the tourism sector partially offset declining exports, as global demand slowed.
In response to the slower-than-anticipated growth, the government has revised down its 2023 gross domestic product (GDP) growth forecast to a range of 2.5 percent to 3.0 percent, compared to the previous estimate of 2.7 percent to 3.7 percent. This adjustment is primarily attributed to the deceleration in exports.
According to the National Economic and Social Development Council (NESDC), which monitors economic data, Thailand’s economy, the second-largest in Southeast Asia, expanded by 1.8 percent in the April-June period compared to the same period the previous year. This figure falls significantly below the 3.1 percent expansion anticipated by economists in a Reuters poll.
In the first quarter, GDP had shown a year-on-year growth rate of 2.7 percent.
Looking at quarterly figures, the seasonally adjusted GDP for the June quarter saw a modest increase of 0.2 percent. This figure is notably lower than the anticipated rise of 1.2 percent.
Furthermore, the NESDC revised the first-quarter GDP growth rate from an initial estimate of 1.9 percent to 1.7 percent.
Thailand’s economy has faced challenges as weak global demand has led to a decline in exports. However, it has been buoyed by the essential tourism sector and robust private consumption growth.
The NESDC has maintained its projection of 28 million foreign tourist arrivals for this year. In terms of exports, it now anticipates a 1.8 percent decrease in 2023, compared to the previous forecast of a 1.6 percent fall.
The decline in exports, a pivotal driver of economic growth for Thailand, has been ongoing since October 2022, primarily due to subdued global demand, particularly a slowdown in China, a significant trading partner for Thailand.
