Thailand’s Economic Growth Slowed More than Expected in the fourth Quarter of 2022

(CTN News) – Thailand’s economic development slowed down more than anticipated in the fourth quarter of 2022 due to a reduction in exports and manufacturing, but a comeback in the crucial tourist industry is likely to support the recovery this year despite a drop in worldwide demand.

The second-largest economy in Southeast Asia grew by 1.4 percent between October and December last year, according to figures released on Friday by the National Economic and Social Development Council (NESDC).

In the three months from October to December, the gross domestic product (GDP) shrank by a seasonally adjusted 1.5 percent, falling short of forecasts for an increase of 0.5 percent.

The tourism-based economy grew by 2.6 percent in 2022 after increasing by 1.5 percent the year before, one of Southeast Asia’s weakest growth rates.

Despite the sluggish fourth quarter, the economy is predicted to pick up steam, with China’s earlier-than-anticipated reopening giving the tourist industry a further boost and helping to partially offset the effects of weaker exports.

The NESDC forecasted on Friday that the economy would expand by 2.7 percent to 3.7 percent this year, a decrease from its earlier prediction of 3 percent to 4 percent growth.

The agency has increased its previous forecast of 23.5 million international tourists arriving in Thailand this year to 28 million due to the return of Chinese visitors.

With 11.15 million international tourists in 2022, Thailand exceeded its tourism goal. Pre-pandemic 2019 attracted almost 40 million tourists who spent 1.91 trillion baht ($55.75 billion).

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