Thailand’s Economy Shows Lower-Than-Expected Growth in 3Q23 at 1.5%

Thailand’s gross domestic product (GDP) expanded 1.5% in the third quarter from a year earlier, according to the released official data on Monday.

Even though it showed some recovery with a 0.8% growth compared to 0.2% in the previous quarter for Southeast Asia’s second-largest economy, it still fell short of expectations of economists in a Reuters poll that forecast the GDP to grow 2.4% from last year and 1.2% from the previous quarter.

The Office of the National Economic and Social Development Council sees Thai 2023 GDP growth projection at 2.5%, adjusted from a 2.50-3.0% range seen in August. Meanwhile, growth for 2024 is expected at 2.7%-3.7%.

Amid slowing down in global demand, the planning agency expected Thai exports to contract 2.0% this year, compared to 1.7-2.2% seen in August. Shipment is expected to recover in 2024 to 3.8%.

Thailand has been managing inflation quite well as the current level at 0.3% was well below the Bank of Thailand’s target range for 2%. Average inflation this year is expected at 1.4% and 1.7-2.2% in 2024.