Thailand’s economy experienced a slowdown in the second quarter, primarily due to weaker exports of goods. However, private consumption and tourism remained robust.
According to the Office of the National Economic and Social Development Council, gross domestic product (GDP) grew by 1.8% compared to the same period last year. This figure represents a decline from the 2.6% growth achieved in Q1 2023.
The Wall Street Journal’s economists predicted a median forecast of 3.1% growth for this quarter, indicating that the actual growth fell short of expectations.
On a seasonally adjusted basis, the economy expanded by 0.2% compared to the previous quarter. This figure is significantly lower than the estimated 1.5% expansion.
As a result of the subdued growth, the agency has revised its growth forecast for the year. Previously projecting growth between 2.7% and 3.7%, they now expect it to range between 2.5% and 3.0%.
Economists believe that while tourism and private consumption drove second-quarter growth, weak exports of goods pose a challenge. As external demand slows down, the impact on growth is likely to persist.
During Q2, private consumption, accounting for approximately half of Thailand’s economy, increased by 7.8% compared to the previous year. This growth rate is higher than the 5.8% increase seen in Q1.
While exports of services saw improvement with a 55% increase, exports of goods experienced a decline of 5.7%. Additionally, imports of goods and services declined by 2.4%, indicating a slowdown in external demand.
Government spending saw a decrease of 4.3%, and public capital investment declined by 1.1%. On the other hand, private capital expenditure increased by 1.0%.
