Thailand's per capita income falls
Per capita income for this year has taken a hit after the National Economic and Social Development Council (NESDC) revised the gross domestic product (GDP) projection from the initial estimate of 2.7-3.7% to 2.5-3%.
This decline is attributed to the second-quarter economic figures for 2023, which fell short of expectations due to a mere 1.8% expansion compared to the 2.6% achieved in the first quarter. The decrease in exports over the course of three consecutive quarters since the fourth quarter of 2022, with a negative growth of 5.7%, is the primary cause.
This negative trend has impacted various sectors including industry, which contracted by 3.3% and government consumption, which has shrunk by 4.3%. The latter was due to the conclusion of state measures, especially non-cash social welfare transfers for goods and services, which have been reduced by up to 25%. Consequently, the first half of 2023 only witnessed a modest 2.2% economic expansion.
As a result, the NESDC has had to adjust other economic indicators including GDP per capita for Thais for this year. In the original estimate, income per capita for Thais was expected to be 262,633.3 baht per person per year. The revised estimate shows income per capita for Thais projected to be 259,409.3 baht per person per year, a reduction of 3,224 baht per person per year from the original estimate.
These adjustments have implications for the Thai population's economic well-being, given that the economy is anticipated to grow at a slower rate than initially predicted.
