Thai GDP grows 2.7 per cent as next govt seen focusing on economy
May 15, 2023
Bangkok [Thailand], May 15 : The Thai economy grew 2.7 per cent in the first quarter of 2023 from a year earlier supported by a strong recovery in tourism and rising consumption, but the gloomy global economic outlook still weighed on the nation, Nikkei Asia reported.
In the January-March quarter, the country's gross domestic product grew from a 1.4 per cent expansion in the previous quarter, according to the National Economic and Social Development Council.
On a quarterly basis, the economy grew 1.9 per cent from the October-December 2022 quarter.
The latest figures come the day after the country's general election that marked the Opposition's significant lead over the incumbent pro-military camp, according to Nikkei Asia.
In the next government, regardless of which party takes the lead, the economy will be a key agenda for Southeast Asia's tourism and manufacturing hub.
According to Nikkei Asia, Thailand's tourism industry, which accounts for around 18 per cent of GDP, started to recover in the second half of 2022 when Bangkok eased all entry rules to welcome foreign tourists.
Thailand received 6.5 million foreign tourists in the first quarter of 2023, beating the target of 6 million, according to the Tourism Authority of Thailand (TAT). Moreover, the return of Chinese tourists in the first quarter saw tourism growth accelerate, spurring demand and driving consumption. Private consumption grew 5.4 per cent in the January-March quarter, down slightly from 5.7 per cent the previous quarter.
Economists say tourism will continue to play a crucial role in boosting the Thai economy this year, as TAT forecast the number of foreign tourists at 25 million to 30 million this year. That is slightly lower than the pre-pandemic level of 39 million in 2019.
However, the sluggish global economic outlook eroded demand and slashed exports, Nikkei Asia said. Thailand's exports contracted 4.5 per cent in the January-March quarter -- worth USD 70.3 billion -- due mainly to the poor economic outlook of major trade partners, cutting purchasing power in the US, Europe and Asia, according to the Thai Ministry of Commerce.
