Thailand Growth falls behind regional peers

Thailand’s economy grew at a slower pace in the third quarter, prompting the new government to push for a $14 billion cash handout program.

Gross domestic product (GDP) rose 1.5% year-on-year in Q3, lower than the estimated 2.2%.

Despite a partial recovery in domestic activity and an uptick in tourism, Thailand’s economic growth continues to trail behind its neighboring countries. This can be attributed to a significant decline in exports and reduced government spending.

Key Takeaways

• The NESDC revised its 2023 GDP growth forecast to 2.5%, down from the previous estimate range of 2.5%-3%, in response to the disappointing print.
• Thailand’s slower economic growth in the third quarter supports the need for the planned $14 billion cash handout program.
• The borrowing to fund the cash aid plan has raised concerns about widening the fiscal deficit and stoking inflation, triggering backlash…