Thailand’s economy grew 4.5% in the third quarter of 2022, authorities announced Monday (Nov 21), as the return of international tourists helped offset stubbornly high inflation.
3.2% growth expected in 2022
The reopening of Southeast Asia’s second-biggest economy earlier this year saw the service sector post a record 87% year-over-year increase, official data showed.
The National Economic and Social Development Council (NESDC) recorded a 4.5% increase in gross domestic product between July and September compared to last year.
The government body forecasts overall growth of 3.2% for this year and between 3 and 4% in 2023.
“The service sector continues to grow due to the reopening of tourism at the beginning of the year,” said Danucha Pichayanan, NESDC secretary general, adding that household consumption rose 9%.
Thailand expects to generate around 570 billion baht (15.4 billion euros) in tourism revenue this year.
Since the reopening, 10.2 million visitors have come to Thailand, still well below the approximately 40 million visitors recorded in 2019.
The kingdom is betting on the return of Chinese tourists in the hope of a relaxation of sanitary measures in China.
“We think China is likely to ease travel restrictions in the second half of next year,” Danoucha Pichayanan said.
high inflation
Before the pandemic, Chinese tourists made up 28% of all arrivals in the country, according to Bloomberg.
The authorities foresee around 23 million tourists in 2023 and 1.2 trillion baht (about 330,000 million euros) in income.
However, the country still faces high inflation, at almost 7%.
“Inflation, rising interest rates and conflicts that have affected energy prices continue to be factors that have an impact,” Danucha Dichayanan said.
Source: BFM TV
