Thailand GDP reported to grow 2,7% in the first quartal on 2023 because it was supported by a strong recovery in tourism and increased consumption, although the dismal global economic outlook is still weighing on the country.
According to the National Economic and Social Development Council, the country’s gross domestic product grew from a 1.4% expansion in the previous quarter.
Thailand’s tourism industry also shows improvement in the second half of 2022 by contributing around 18% of GDP. This comes as Bangkok relaxes all entry rules to welcome foreign tourists.
In the first quarter of 2023, Thailand received 6.5 million foreign tourists beating its target of 6 million, according to the Tourism Authority of Thailand (TAT). The return of Chinese tourists in the first quarter also spurred rapid tourism growth, spurring demand and boosting consumption.
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Economists say that tourism will continue to play an important role in boosting Thailand’s economy this year, TAT also estimates that the number of foreign tourists will reach 25 million – 30 million this year.
However, the sluggish global economic outlook eroded demand and cut exports. Thai exports contracted 4.5% in the January-March quarter. This is due to the poor economic prospects of major trading partners.
The Ministry of Commerce estimates that Thailand’s exports will grow by 1% to 2% in 2023 which represents a decrease from 2022 of 5.5%. Meanwhile, NESDB has maintained its forecast for economic growth in 2023 of 2.7% to 3.7% due to tourism and consumption which continue to support growth.
Source: Asia Nikkei
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