Thailand’s Q2 2023 GDP growth of 1.8% year-on-year was weaker than expected, leading to a lowered growth forecast for the year from 3.0% to 2.8%.
Key Takeaways
- Thailand’s Q2 2023 GDP growth of 1.8% was much weaker than expected, leading to a downward revision of the 2023 growth forecast to 2.8% due to high interest rates, political uncertainty, and weak external demand.
- Tight credit conditions, elevated household debt, and higher interest rates will weigh on domestic activity and consumption in Thailand, hindering economic growth.
- While Thailand’s tourism industry shows signs of recovery, the country’s economic rebound will remain lackluster due to ongoing challenges such as tight credit conditions, political uncertainty, and weak global demand.
The country faces challenges from high interest rates, political uncertainty, and weak external demand. However, the tourism sector’s recovery is expected to provide some relief. Tight credit conditions, political developments, and a slowdown in the global economy are all factors contributing to the economic slowdown.
On the positive side, Thailand’s tourism industry is expected to continue picking up and could reach pre-pandemic levels by early…
