Thailand’s GDP expands 1.5% in Q1: NESDC

MONDAY, MAY 20, 2024
Thailand’s GDP expands 1.5% in Q1: NESDC

Council slightly cuts overall projection despite growth due to risk factors posed by US-China trade war, geopolitical conflicts

Though the Thai GDP expanded 1.5% year on year (YoY) in the first quarter, the National Economic and Social Development Council (NESDC) still reduced its projection for this year.

Danucha Pichayanan, NESDC secretary-general, told the press on Monday that the economy grew 1.5% in the January-March quarter thanks to a 6.9% expansion in private consumption and the service sector. Exports in the first quarter also rose by 2.5%, while private investment grew by 4.6%.

Yet, despite the growth, NESDC has lowered its projection for this year slightly to 2-3% from 2.2-3.2% mainly due to the risks posed by the ongoing US-China trade war and geopolitical conflicts.

Plus, Danucha said, the economy is also under pressure by the slowdown in state projects, which contracted 27.27% owing to a slow disbursement of state funds.

Thailand’s GDP expands 1.5% in Q1: NESDC

He noted that though private consumption had risen by 6.9%, it was still lower than the 7.4% growth in the fourth quarter of last year. He attributed this to a higher rate of unemployment.

The gross fixed capital formation for the first quarter also dropped 4.2% YoY, compared to a drop of 0.4% YoY in the last quarter of last year, he said.

Danucha reckons the biggest risks facing the economy this year are a surge in household debts and flooding.

Rising freight prices due to risks from geopolitical conflicts would also affect exports which would in turn affect the economy.

Thailand’s GDP expands 1.5% in Q1: NESDC

Danucha said the NESDC had predicted that overall investment this year would expand by 1.9% and is advising the government to accelerate the disbursement of funds to reach its economic targets.

It has also advised the government to ensure SMEs have enough liquidity and to work on solving the problem of household debts.
The NESDC has also advised the government to take care of farmers who could be affected by floods during the upcoming rainy season.

The government is encouraged to closely monitor global economic fluctuations and implement measures to boost exports and industrial production.
 
 

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