Thailand’s economy expands by 2.3% in Q2 ’24

Thailand’s economy surged in the second quarter, fuelled by a rebound in tourism and exports, but the outlook remains clouded by a recent change in government and the uncertain fate of a stimulus package.

Gross domestic product (GDP) expanded by 2.3 per cent in the April-June period compared to the same time last year, according to data released by the National Economic and Social Development Council (NESDC) on Monday.

This outpaced analyst expectations and marked the fastest growth in five quarters. On a quarterly basis, the economy grew by 0.8 per cent.

Despite the political transition, the NESDC chief, Danucha Pichayanan, assured that the fiscal year 2025 budget, starting on October 1, will proceed as planned. He also indicated that alternative stimulus measures could be implemented if the cash handout plan is scrapped.

The Thai baht strengthened against the dollar on Monday, reflecting improved market sentiment following the initial shock of the leadership change. The main stock index also saw gains.

Attribution: Bloomberg

Subediting: M. S. Salama