Thailand's economy on recovery path as tourism rises
THAILAND’S economic recovery remained on track in June as the tourism sector expanded on higher foreign tourist arrivals while exports declined, the central bank said on Monday (Jul 31).
Economic activity was seen gradually improving, driven by tourism, as exports were not expected to improve until late in the year, said Chayawadee Chai-Anant, an assistant governor at the Bank of Thailand (BOT).
“In the period ahead, tourism should continue to recover and remain a key driver force, while exports are likely to be stable,” she told a briefing.
The BOT has forecast economic growth at 3.6 per cent this year and 3.8 per cent next year, driven by tourism. Last year’s growth was 2.6 per cent.
It has predicted 29 million tourist arrivals this year and 35.5 million in 2024. That compared with nearly 40 million visitors in pre-pandemic 2019.
Chayawadee said the central bank was monitoring risks from a global economic slowdown and a delay in the formation of a new government after May national elections.
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“The government formation, if delayed for a long time, would dent confidence,” she added.
Thailand’s parliament is scheduled to meet on Aug 4 to try again to pick a prime minister as a political stalemate drags for more than two months after the election.
In June, exports, a key driver of growth, dropped 5.9 per cent from a year earlier as global demand slowed.
Private consumption dipped 0.3 per cent in June from the previous month while private investment contracted 1.8 per cent on the month, the BOT said.
Thailand recorded a current account surplus of US$1.4 billion, after a deficit of US$2.8 billion in May.
In the second quarter of 2023, South-east Asia’s second-largest economy improved slightly from the previous period, the BOT said. Official second-quarter gross domestic product data is due to be released on Aug. 21.
The economy expanded 2.7 per cent on-year in the first quarter. REUTERS
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