Thailand’s economic system slows amid declining exports, manufacturing | Enterprise and Economic system

Southeast Asia’s second-largest economic system grows 1.4 p.c within the final quarter of 2022 amid hopes for tourism-led restoration.

Thailand’s financial progress slowed greater than anticipated within the fourth quarter of 2022 as exports and manufacturing declined however a rebound within the important tourism sector ought to proceed to spice up the restoration this yr amid weaker world demand.

Southeast Asia’s second-largest economic system expanded 1.4 p.c within the October-December interval from a yr earlier, knowledge from the Nationwide Financial and Social Improvement Council (NESDC) confirmed on Friday.

On a quarterly foundation, gross home product (GDP) contracted a seasonally adjusted 1.5 p.c in October-December, lacking expectations for a 0.5 p.c rise.

In 2022, the tourism-dependent economic system expanded by 2.6 p.c, after rising by 1.5 p.c within the earlier yr, which was among the many slowest progress charges in Southeast Asia.

Regardless of the slower fourth quarter, the financial restoration is predicted to achieve some traction, with China’s earlier-than-expected reopening proving an extra enhance to the tourism sector, serving to offset a number of the impression of weakening exports.

On Friday, the NESDC predicted the economic system would develop 2.7 p.c to three.7 p.c this yr, down from a earlier forecast of three p.c to 4 p.c progress.

With the return of China’s guests, the company now expects Thailand to obtain 28 million overseas vacationer arrivals this yr, up from the 23.5 million projected earlier.

Thailand beat its tourism goal in 2022 with 11.15 million overseas guests. It welcomed a report of practically 40 million guests in pre-pandemic 2019, who spent 1.91 trillion baht ($55.75bn).