Thailand’s economy grows 2.3% in Q2, surpassing forecasts

Thailand’s economy roared back to life in the second quarter, fuelled by a surge in consumption, tourism, and exports, according to today’s eye-popping official data. This economic boost has prompted the government to up its growth forecast for the year.

The National Economic and Social Development Council (NESDC) revealed that Southeast Asia’s second-largest economy expanded by 2.3% from the same period last year—blowing past analysts’ expectations of 2.1%, as predicted in a Reuters survey.

In the first quarter of 2024, the country’s GDP saw an impressive upward revision, climbing 1.6% year-on-year.

On a quarterly basis, GDP grew by a seasonally adjusted 0.8% in the second quarter, a dip from the previous quarter’s revised 1.2% growth and shy of the 0.9% forecast.

Private consumption remained a bright spot, although public and private investments took a hit, according to the NESDC’s latest statement.

The NESDC now projects GDP growth for this year to be between 2.3% and 2.8%, tightening its earlier forecast range of 2.0% to 3.0%. Last year’s growth stood at 1.9%.

Thailand’s economic growth has trailed behind its regional counterparts, facing challenges such as high household debt, elevated borrowing costs, and weak exports due to a slowdown in its primary trading partner, China.

The NESDC maintained its export growth forecast at 2% for the year.

“Private consumption continued to grow in the second quarter, but public and private investments contracted.”

This economic update provides a more optimistic outlook for Thailand’s financial health, driven primarily by the tourism and export sectors, despite ongoing domestic financial challenges, reported Bangkok Post.

In related news, the Office of Transport and Traffic Policy Planning (OTP) announced an ambitious plan to invest 8.87 billion baht to enhance water transport networks in Bangkok and its surrounding provinces. This comprehensive development plan aims to bolster public transport by boat, spanning from 2024 to 2032.

Panya Chupanich, Director-General of the OTP, confirmed that the Transport Ministry approved the project, which is now awaiting further review from the NESDC and the Cabinet.