Business News Asia
Thailand’s economy grew at its fastest pace in a year in the second quarter as the easing of COVID-19 restrictions boosted economic activity and tourism. But years of high inflation and the slowdown in China remain drags on the nascent recovery.
The government has slightly revised its economic growth forecast for 2022 to 2.7% to 3.2% from the previous 2.5 to 3.5%.
It cites a recovery in the important tourism sector, an increase in consumption and exports. Last year’s growth of 1.5% was the slowest in Southeast Asia.
The National Council for Economic and Social Development announced Monday that the economy grew at an annual rate of 2.5% in the June quarter. This is the fastest growth since the second quarter of 2021.
This compares with forecasts for an increase of 3.1% and 2.3% in the March quarter.
Southeast Asia’s second-largest economy is recovering steadily after the pandemic ban was lifted. But the absence of Chinese tourists and the slowdown in China continue to depress growth, while Thailand needs to get a grip on inflation.
Inflation is expected to impact consumer spending and investment, while exports will be inhibited by the global economic slowdown.
Quarterly gross domestic product (GDP) grew by a seasonally adjusted 0.7% in April-June. A plus of 0.9% was expected, compared with a plus of 1.2% in the first quarter.