By Kosaku Narioka
Thailand’s economic growth slowed in the second quarter due partly to weakness in exports of goods, despite strong private consumption and tourism.
Gross domestic product rose 1.8% from a year earlier, compared with 2.6% growth in the first quarter of 2023, the Office of the National Economic and Social Development Council said Monday.
The quarterly expansion missed the median forecast of 3.1% growth in The Wall Street Journal’s poll of economists.
The economy grew 0.2% from the previous quarter on a seasonally adjusted basis, compared with an estimated 1.5% expansion.
The agency cut its growth forecast, projecting the economy to expand 2.5%-3.0% this year, compared with its previous forecast of 2.7%-3.7% growth.
Second-quarter growth was driven by tourism and private consumption, which offset some weakness in exports of goods, economists said. Weak exports of goods will likely weigh on growth for the time being as external demand slows, they said.
Private consumption, which makes up about half of the Thai economy, increased 7.8% in the second quarter from a year earlier, compared with a 5.8% increase in the first quarter.
Exports of services climbed 55%, compared with a 78% increase in the previous quarter, while exports of goods decreased 5.7% and imports of goods and services declined 2.4%, the data showed.
Government spending fell 4.3% and public capital investment decreased 1.1%, while private capital expenditure gained 1.0%.
Write to Kosaku Narioka at [email protected]
