Thailand’s National Economic and Social Development Council (NESDC) announced on Monday that the country’s gross domestic product (GDP) expanded by 2.3% in the second quarter of 2023, accelerating from the 1.6% growth recorded in the first quarter.
The positive growth was primarily driven by a 4% increase in private consumption and a 0.3% rise in government spending. Exports also contributed to the expansion, growing by 1.9% during the quarter. However, overall investment contracted by 6.2%.
For the full year 2023, the NESDC forecasts GDP growth to be between 2.3% and 2.8%, with a median of 2.5%. This is slightly lower than the previous estimate of 2.0% to 3.0%. The downward revision is partly due to higher government investment, driven by improved disbursement.
Key factors supporting the economic outlook include a sustained recovery in the tourism sector, robust domestic consumption, and increased government spending and investment.
While the global economic recovery is expected to gradually boost exports, risks remain, including high household and corporate debt, tight credit standards, climate change, and global economic volatility.
NESDC Secretary-General Danucha Pichayanan highlighted the need for careful consideration of any continuation of the government’s 10,000 baht digital wallet scheme. He emphasized the importance of evaluating the funding source and payment system, particularly given the potential impact on the 2023 and 2024 budgets.
Danucha also addressed the issue of non-performing loans, stating that the government, in collaboration with the Bank of Thailand and the Ministry of Finance, would be implementing more targeted measures to address this problem. (TNA)
