BANGKOK (Reuters) – Thailand’s economy grew at its fastest pace in more than a year, boosted by a recovery in tourism and higher consumption, official data showed on Monday.
SECOND LARGEST ECONOMY – The largest economy grew 4.5% year-on-year in the September quarter, according to the National Economic and Social Development Council.
Tourism picked up pace earlier this year after governments lifted all COVID-25 restrictions, but outlook weighed down by slowing global growth and high inflation overshadowed by the risks.
The government said the economy would grow by 3.2% this year, compared with a previous forecast range of 2.7% to 3.2%. It expects 2023 growth of 3% to 4%. Last year’s 1.5 percent growth rate was one of the slowest in the region.
“(2023) Growth will be supported primarily by a recovery in tourism, expansion of both private and public investment, continued expansion of domestic demand and sound growth in the agricultural sector ,” the state planning agency said in a statement.
Third-quarter growth was in line with expectations, a Reuters poll showed growth of 4.5%, accelerating from 2.5% growth in the April-June quarter.
The data may reinforce the 25-BoT November 2023 meeting Basis points for rate hikes as the central bank attempts to strike a delicate balance between reining in near-term 14 year-high inflation while supporting a fragile recovery.
On a quarterly basis, gross domestic product (GDP) rose a seasonally adjusted 1.2% in July-September, beating expectations for a 0.9% increase.