In the third quarter, Thailand’s economy grew at a slower rate of 1.5% year on year, marking the second consecutive quarter of decline. This figure was lower than the predicted 2.4% by economists and below the 1.8% growth seen in the previous quarter. Several factors, including public spending, inventories, and goods exports, dragged down growth. However, 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 amidst political turmoil. While there was optimism surrounding a future of tightening monetary policies, the weak GDP figures for the third quarter intensified concerns about the country’s economic outlook.
In response to these concerns, 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 the central bank’s 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 boost economic growth. These measures could impact