Thai 2023 GDP Misses Expectations as Slower Demand and Tourist Arrivals Weigh on Economy

The Thai economy for the fourth quarter of 2023 and the year as a whole missed expectation as tourist arrivals and demand grew slower-than-expected.

Gross domestic product in the fourth quarter rose 1.7%, compared to 2.5% growth forecast by economists in a Reuters poll. Meanwhile, Thai 2023 GDP grew 1.9%, also missing expectations for 2.4% growth.

The weaker-than-expected economic growth raises the case for an interest rate cut at the Bank of Thailand’s next policy meeting on April 10, after it left the key rate steady at 2.50%, the highest level in more than a decade, but in a split vote as two policymakers favoured a rate cut by a quarter point.


The Office of the National Economic and Social Development Council (NESDC) expected 2024 GDP growth at 2.2-3.2%, down from 2.7-3.7% seen in November.

Meanwhile, exports growth has also been revised down to 2.9% vs 3.8% seen in November last year.

Headline inflation is expected to be at 0.9-1.9%, down from 1.7-2.7% seen last year.