Thailand’s economy experienced a significant boost in the first quarter of the year, growing by 2.7 percent, primarily attributed to a revival in tourism and increased agricultural output, as stated by the country’s economic planning agency. This positive growth marked the sixth consecutive period of expansion, surpassing the 1.4 percent growth recorded in the final quarter of 2022, according to data released by the Office of the National Economic and Social Development Council (NESDC).
The NESDC’s statement on Monday highlighted that the steady expansion of the service sector, fueled by a rising number of foreign visitors to the country, played a pivotal role in this improvement. Additionally, the agricultural sector experienced higher yields, contributing to the overall economic growth. These factors combined to drive Thailand’s economic progress during this period.
Looking ahead, the NESDC maintained its gross domestic product (GDP) forecast for the year within a range of 2.7 percent to 3.7 percent. This projection is based on the expectation of a further recovery in tourism, which is anticipated to bring positive impacts to the economy, along with the steady expansion of private consumption. These factors are expected to provide continued momentum to Thailand’s economic growth.
Furthermore, the NESDC also predicted a slowdown in headline inflation for the country this year. It anticipates that the inflation rate will range between 2.5 percent and 3.5 percent year-on-year. This forecast indicates a level of stability in the economy and suggests that the country is likely to maintain a controlled inflation rate in the coming months.
Thailand’s economy exhibited resilience in 2022, expanding by 2.6 percent compared to the 1.5 percent growth recorded in 2021. This growth was primarily driven by the gradual recovery of the vital tourism industry. As tourist arrivals increased, the economy experienced a notable uptick, setting the stage for the positive growth trajectory observed in the first quarter of this year.
Overall, Thailand’s economy has shown promising signs of recovery and resilience in recent times. With the revival of tourism and an increase in agricultural output, the country is poised to sustain its growth momentum throughout the year. As the tourism sector gains further traction and private consumption continues to expand, Thailand’s economy is expected to flourish, further reinforcing its position as a key player in the Southeast Asian region.
