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WEDNESDAY, December 06, 2023

Thai economy grows less than expected in 3rd quarter

Thai economy grows less than expected in 3rd quarter
MONDAY, November 20, 2023

Thailand’s economic growth was lower than forecast in the third quarter, as sluggish exports took a toll despite continued recovery of consumption and tourism.

Gross domestic product (GDP) in Q3 expanded 1.5% from the same period last year, slowing from 1.8% in the second quarter, according to the National Economic and Social Development Council (NESDC).

Economists polled by Reuters had predicted 2.4% growth in Q3.

Government spending continued to fall, mainly due to lower spending on Covid-related health measures. However, growth of household consumption remained consistent while private sector investment accelerated.

Private consumption continued to grow at 8.1%, up from 7.8% in the second quarter. Services also expanded, by 15.5%.

The Thai economy grew 1.9% over the first nine months of this year.

However, the NESDC forecasts the economy will grow 2.5% this year, following a 2.6% expansion last year.

For 2024, it forecasts expansion in a range of 2.7% to 3.7%.

Srettha Thavisin, the Prime Minister and Minister of Finance expressed deep concern that the GDP for the third quarter is lower than expected.

" This is attributed to issues related to expenditure, investment, and low expansion in production. Consequently, Everything is worse than anticipated," he said.