Thai economy grows less than expected in 3rd quarter
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.