Thai Q1 GDP Grows Faster than Expected, Full-Year Growth Projection Maintained at 2.7-3.7%

Gross domestic product in Thailand increased faster than predicted in the first quarter, according to government data released on Monday. This was spurred by an uptick in private spending and tourism, which will help offset a decline in exports.

The National Economic and Social Development Council (NESDC) reported that, compared to the same period a year ago, the Thai economy expanded by 2.7% in the months of January through March.

After growing by 1.4% in the previous quarter, economists polled by Reuters predicted GDP to grow by 2.3% year over year in the January-March period.

The second-largest economy in Southeast Asia has been slow to recover since the pandemic hit, but things have started to look up in recent months thanks to the influx of Chinese tourists.

According to NESDC, a decline in exports will be somewhat mitigated by the recovery of the vital tourist sector.

The NESDC maintained its projection for GDP growth in 2023 at 2.7% to 3.7%.