In the third quarter, Thailand’s economy grew by 1.5% year on year, marking a slowdown for the second consecutive quarter. This figure was below the 2.4% predicted by economists and lower than the 1.8% growth seen in the previous quarter. Despite weak GDP figures, private consumption and tourism remained strong, while public spending, inventories, and goods exports dragged down growth.
The new prime minister of Thailand, Srettha Thavisin, took office in late September and faced the challenge of leading the country to long-term economic recovery amidst political turmoil. While there was optimism surrounding a future of tightening monetary policies, concerns about the country’s economic outlook intensified with weak GDP figures for the third quarter.
In response to these challenges, the Bank of Thailand raised its key interest rate for the eighth straight time in September and expected growth and inflationary pressures to accelerate in the coming year. However, analysts at Nomura predict a pause in the central bank’s policies in the near term, with the possibility of rate cuts by the second quarter of 2024. The government may also consider implementing large digital wallet handouts to stimulate economic growth, which could impact the Thai baht. The currency has already weakened against