19-2-2024 (BANGKOK) Thailand’s economic expansion decelerated in 2023, with GDP growth clocking in at 1.9%, as a resurgence in the tourism sector and robust private consumption were offset by declines in manufacturing and public spending, according to data released by the National Economic and Social Development Council (NESDC) on Monday.
The weaker-than-anticipated growth figures have bolstered the case for a potential interest rate cut when the Bank of Thailand convenes for its next policy review on April 10. In its previous meeting, the central bank maintained the benchmark rate at 2.50%, the highest level in over a decade, amid a split decision, with two dissenting members advocating for a reduction.
Looking ahead, the NESDC has revised down its growth projections for 2024, forecasting an expansion of 2.2% to 3.2%, a more conservative range compared to the 2.7% to 3.7% estimate provided in November of the previous year.
During a press conference, NESDC Secretary-General Danucha Pichayanan revealed that GDP growth in the fourth quarter of 2023 stood at 1.7%, falling short of the 2.5% expansion anticipated by a Reuters poll.
