Thailand recorded slower economic growth as recovery in tourism and domestic consumption failed to offset the fall in exports.
The Asian nation’s Gross Domestic Product (GDP) grew 2.6 percent in 2022, a rise from 1.5 percent recorded the previous year, due to rise in consumption and private investment.
While core inflation in Thailand rose 6.1 percent, consumption increased 6.3 percent during the year. However, in the fourth quarter the country’s economic growth slowed.
On the other hand, the services exports expanded 94.6 percent in the quarter.
A positive growth was seen in the economy due to the exports last year, but as the demand from the United States and Europe declined, so did the country’s GDP.
Tourism, which makes up nearly 20 percent of Thailand’s GDP, continued to gain traction.
Travel in Thailand went back to normal in the second half of 2022 after all the COVID-related entry restrictions were ended by the government.
The country saw 11.5 million visitors last year, exceeding the target of 10 million.
The Thai government is anticipating 28 million visitors this year with the return of Chinese tourists, which is the biggest and highest spending group.
The National Economic and Social Development Council (NESDC), the economic planning agency of Thailand, on Friday changed its GDP growth for 2023 to 2.7-3.7 percent.
This is less than the forecast of 3-4 percent in November.
Danucha Pichayanan, secretary-general of NESDC told a news agency that even if other factors, especially tourism, are doing well, exports are the big drag.
The nation’s neighbours have outpaced it in terms of GDP growth.
The economy of Malaysia and the Philippines grew 8.7 percent and 7.6 percent, respectively in the fourth quarter.
Like Thailand, Singapore also lowered its estimation of its annual economic growth from 3.8 percent to 3.6 percent, less than the 8.9 percent recorded in 2021.
The country lowered its forecast because of the weak external demand and inflationary pressures on consumption.
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