Thailand’s economic growth slows to 1.9 pct in 2023 on weak exports
BANGKOK: Thailand’s National Economic and Social Development Council (NESDC) announced that the country’s gross domestic product (GDP) grew by 1.9 per cent year-on-year (y-o-y) in 2023, slower than the revised 2.5 per cent growth the previous year due to weak exports.
In a statement, NESDC said the Thai Economy in the fourth quarter (4Q) of 2023 expanded by 1.7 per cent y-o-y, accelerating from a 1.4 per cent growth in the previous quarter.
It said that the Thai economy in 2023 was bolstered by private consumption and increased investment; however, weak exports continued to exert a drag.
“For 4Q23, exports grew by 3.4 per cent y-o-y, and private consumption saw a significant increase of 7.4 per cent y-o-y.
“However, public consumption and investment experienced declines of 3.0 per cent and 20.1 per cent respectively,” it said.
NESDC said Thailand’s 2024 economic outlook is projected to expand between 2.2 and 3.2 per cent, compared to the earlier estimate of 2.7 to 3.7 per cent.
The agency said key supporting factors include the return to an expansion of exports of goods in line with the global economic recovery and the favourable growth of private consumption and private investment.
In addition, it said the continual recovery of the tourism sector also contributes to the expansion.
“Private consumption expenditure and private investment are expected to increase by 3.0 per cent and 3.5 per cent respectively,” it said.
Meanwhile, NESDC said the export value of goods is projected to expand by 2.9 per cent while headline inflation is estimated to be in the range of 0.9 and 1.9 per cent.
“The current account is projected to record a surplus of 1.4 per cent of GDP,” it said.