Thai economy’s Q3 bounce-back: Warming up after a cool Q2

The Thai economy’s growth rate for the third quarter of this year is anticipated to surpass that of the second, according to the Bank of Thailand. This forecast comes after the nation’s economic expansion fell short of the central bank’s estimations for the preceding quarter.

Chayawadee Chai-anant, the assistant governor for the corporate relations group at the central bank, reported that private consumption and a revival in the service sector propelled the Thai economy’s expansion during the third quarter. This growth aligns with the increasing influx of domestic and international tourists.

Excluding gold, merchandise exports saw a modest rise during the third quarter, fuelled by the automobile and petroleum sectors.

These trends reflect the activities within the manufacturing sector, Chayawadee explained. Other sectors registering gains encompassed jewellery, agricultural products, and agro-manufacturing commodities.

However, machinery and equipment investments, which had seen a surge in the previous period, took a downturn, leading to decreased private investment. Public spending followed suit, with contractions observed in both current and capital expenditures, Chayawadee stated.

“We will wait for an official announcement of Thai GDP growth in the third quarter from the National Economic and Social Development Council [NESDC]. However, the central bank expects a better growth rate in the third quarter than in the previous quarter.”

Thai economy expands

According to the NESDC, the Thai economy expanded by 1.8% year-on-year in the second quarter of this year, following a 2.6% growth in the first quarter.

Between January and September, Thailand welcomed around 20 million foreign tourists. After seasonal adjustment, the number of arrivals in September increased from the previous month for most nationalities, particularly South Korea and India, which were on extended national holidays.

Furthermore, there was an upswing in visitors from the Middle East and Europe, following a slowdown in the preceding month. The central bank noted that Chinese tourists, in particular, benefitted from a visa exemption scheme launched late in the month, reported Bangkok Post.

Tourist expenditure also demonstrated an upward trajectory, in line with the increased visitor count and occupancy rate, according to Chayawadee.

While official data regarding the impact of the recent Siam Paragon shooting on tourism is yet to be obtained, it is expected to negatively impact tourist sentiment and confidence. However, the effects might be mitigated by the government’s free visa measures and seasonal tourism factors, Chayawadee added.

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