BANGKOK,19th August 2019 (NNT) – The National Economic and Social Development Council (NESDC) has reported Gross Domestic Product (GDP) in the second quarter this year has been affected by the trade war and world economic slowdown, prompting it to drop to 2.3%, compared to the first quarter’s 2.8%.
NESDC Secretary General, Thossaphorn Sirisamphan said today that the Thai economic slowdown obviously resulted from the trade war between the United States and China with a 4.2% drop in Thai exports in the second quarter, compared to a 4% decline in the first quarter. Export goods at reduced value included rice, which dropped 24%, rubber which dropped 8.5% and vehicles which dropped 13%. Domestic consumption was reduced from 4.9% in the first quarter to 4.4% in the second quarter while tourism also slowed down.
The NESDC has forecast that Thai economic growth would rise by an average of 3% throughout this year, in a range of 2.7% to 3.2% compared to an average of 3.6 in a range of 3.3% to 3.8% earlier predicted. Thai exports would mostly be affected by external factors and would drop 1.2% throughout this year, compared to a 2.2% rise earlier expected.
The NESDC secretary general said if the GDP rose 3%, the exports would only drop 1.2%, domestic consumption would rise 4.2% and investments would rise 3.8% throughout the year. In the second half of this year, exports would rise by an average of 3% and no fewer than 20 million foreign tourists visiting Thailand, generating more than two trillion baht in cashflow. In the second half of this year, investments would rise 4.9% due to prompted government expenditure and introduction of a 300 billion baht economic stimulus measures.
