Thailand's economy poised to expand 3.7% this year, as Q1 sees 2.7% growth
The Thai economy expanded by 2.7% in the first quarter of this year, nearly doubling from 1.4% in the previous quarter.
If economic conditions remain stable without a recession, a 3.7% GDP growth for this year is possible, the secretary-general of state agency National Economic and Social Development Council (NESDC), Danucha Pichayanan, said on Monday.
Several sectors saw expansion: private consumption rose by 5.4% compared to the previous quarter, while overall investment grew by 3.1%, driven by increased public sector investment of 4.7%. However, export of goods contracted by 6.4%.
The NESDC has maintained its economic projection for this year at 2.7% to 3.7%, which is consistent with previous forecasts.
The global economic growth has been revised to 2.7% from 2.6% previously.
GDP growth in the first quarter expanded by 2.7%, and when seasonally adjusted, the figure is 1.9% compared to the previous quarter's 1.1% contraction, he said. Therefore, concerns of a technical recession are unwarranted, and the future outlook for Thailand's economy remains positive, Danucha added.
The NESDC secretary-general emphasised the importance of continuous spending in line with the government's objectives, along with accelerating investments in state enterprises. Additionally, efforts should be made to maintain a positive economic climate after the general election to instil confidence in both the domestic and foreign investors.
t is necessary to expedite the promotion of Thai exports to markets with significant growth potential, focus on border trade and attract tourists to achieve the desired targets.
The new government's policies should prioritise addressing export-related issues, particularly in the agricultural and industrial sectors.
There is confidence that Thailand's economy is not facing any significant problems as it continues to expand, primarily driven by tourism and robust consumption, he said.
However, it is crucial to communicate with the new government regarding the need to maintain fiscal discipline and have austerity measures in place, as Thailand has been experiencing a prolonged period of budget deficit. Continuous deficits over an extended period would affect the country's credit rating, Danucha said.
