16th May 2023


Thailand grows beyond forecast despite election uncertainty

Thailand's economy expanded faster than expected in the first quarter due to a recovery in tourism, while investors braced for political uncertainty after the opposition won the elections last Sunday.

COVID-19 caused a downturn in Thailand’s tourism-reliant economy which has picked up in recent months as Chinese tourism resurged.

The revival of the sector, which accounts for 11-12% of its gross domestic product (GDP), is expected to help offset the impact from declining exports.

Thailand's state planning agency’s outlook is for 2.7%-3.7% GDP growth in 2023, compared to 2.6% last year, saying the post-election atmosphere should be kept positive to build investor confidence.

Thailand’s economy grew 2.7% in January-March compared to last year, versus a 1.4% growth in the previous quarter according to data from the National Economic and Social Development Council (NESDC).