Thailand’s economy slows 1.5% in Q1

Thailand’s gross domestic product slowed 1.5 per cent year-on-year in first quarter of 2024 , down from 1.7 per cent in the previous quarter, the Nikkei Asia reported on Monday, citing data from National Economic and Social Development Council (NESDC).

This lackluster performance can be attributed to contrasting trends in key sectors. Tourism, a vital industry accounting for nearly 20 per cent of GDP, witnessed a strong rebound.

The arrival of 12 million foreign visitors in the first quarter fueled a 6.9 per cent increase in private consumption and a 9.4 per cent jump in logistics activity.

The government is now aiming to attract between 30 million and 35 million tourists for the entire year.

Despite a positive trend, exports experienced a significant decline, dropping by 10.9 per cent in March after showing promising growth earlier in the year.

This downturn had a cascading effect on both the agricultural by -3.5 per cent and industrial with -3.0 per cent sectors due to decreased demand.

NESDC has adjusted its 2024 economic growth forecast to 2.0 per cent to 3.0 per cent, down from the previous estimate of 2.2 per cent to 3.2 per cent.

External factors like global economic volatility and geopolitical issues are affecting Thailand’s economy, says NESDC Secretary-General Danucha Pichayanan. These challenges are likely to impact the country’s growth in the near future, he added.