Economic Growth Driven by Consumption, Tourism, and Exports
BANGKOK (Reuters) Thailand’s economy grew faster than forecast in the second quarter of 2024, with GDP rising by 2. 3% year-on-year. This growth, due to higher consumption, recovery of tourism, and exports, was higher than the estimates of a 2. 1% growth, said a Reuters poll. The National Economic and Social Development Council (NESDC) disclosed the number on Monday and pointed out that the figure was better than the revised Q1 growth rate of 1. 6%.
Quarterly Growth Slows, Investments Contract
On a seasonally adjusted basis and every quarter, Thailand’s Gross Domestic Product advanced by 0. 8% earned in the April-June period, a tad below the 1. 2 % boom noted in the previous region boom recorded inside the previous region. The increased price of the 2nd sector also failed to rise to meet the 0. 9% analysts’ forecasted increase. On the contrary, and as the NESDC outlined in its record, personal intake persisted to upload at an upward thrust, however, each public and personal investment recorded a contraction that restrained the overall increase momentum.
Government Narrows Full-Year Growth Forecast
Given the latest financial numbers, the NESDC has readjusted its full-year financial development estimate • tightening the variety expected to the range of 2. 3 % and a pair, 2.8%. This adjustment looks more optimistic than the previous one of 2.0% to several; 3. 0% growth. However, even with those positive signs, Thailand’s economy has been inclined to some challenges such as high household debt, better borrowing cost and dull exports due to slowing down of China, Thailand’s largest trading partner. The NESDC kept its export boom projection constant at 2% for the twelve months, although it remains bullish for this year given the continuing economic challenges.