Thailand Q1 GDP Growth Improves More Than Expected
17 May 2022 - 4:28PM
RTTF2
Thailand's economic growth accelerated more than expected in the
first quarter as the relaxation of Covid-19 travel restrictions
underpinned tourism, but the government downgraded its outlook for
this year citing risks emanating from the war in Ukraine.
Gross domestic product grew 2.2 percent on a yearly basis in the
first quarter, the National Economic and Social Development
Council, or NESDB, said Tuesday. The pace of growth was forecast to
improve to 2.1 percent from 1.8 percent in the fourth quarter. On a
quarterly basis, GDP growth eased to 1.1 percent from 1.8 percent a
quarter ago.
On the expenditure-side, private final consumption expenditure
grew 3.9 percent annually, accelerating from a 0.4 percent increase
in the fourth quarter. Meanwhile, growth in government spending
eased to 4.6 percent from 8.1 percent.
Gross fixed capital formation moved up 0.2 percent, reversing a
0.2 percent drop.
Exports and imports of goods and services expanded 12.0 percent
and 6.7 percent, respectively.
The production-side breakdown showed that the annual economic
growth was attributable to an increase of 4.1 percent in the
agricultural sector, in line with higher yields of main crops and a
2.9 percent rise in the service sector.
The government agency downgraded its growth outlook for 2022 to
2.5 percent to 3.5 percent from the previous forecast of 3.5
percent - to 4.5 percent. Headline inflation is estimated to be in
the range of 4.2 - 5.2 percent this year.
Following continued growth in the first quarter, the pace of the
recovery will largely depend on how quickly tourists return now
that the country has fully reopened to foreign visitors, said
economists at Capital Economics.
The firm noted that even as tourism rebounds, other headwinds
are growing. The surge in oil prices are weighing on purchasing
power of consumers. Moreover, exports are set to be weakened by
slower global growth.
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