Thailand’s economy saw a slowdown in the third quarter, with GDP growth coming in at 1.5% year on year, below the 2.4% predicted by economists. This was also lower than the 1.8% growth seen in the previous quarter, with public spending, inventories, and goods exports cited as factors that dragged growth down. Despite this, private consumption and tourism remained strong.
The new prime minister of Thailand, Srettha Thavisin, took office in late September and faced the challenge of leading the country to long-term economic recovery amid political turmoil. The weak GDP figures for the third quarter intensified concerns about the country’s economic outlook.
In an effort to combat these challenges, the Bank of Thailand raised its key interest rate for the eighth straight time in September and expected growth and inflationary pressures to accelerate in the coming year. However, analysts at Nomura predict a pause in central bank policies in the near term, with the possibility of rate cuts by the second quarter of 2024.
The weak GDP figures may lead to government measures such as large digital wallet handouts to stimulate economic growth. This could have an impact on