Thailand GDP Growth Eases to 1.9% in 2023, Misses Forecasts

Despite efforts to boost the economy by banking on the recovery of the tourism sector, growth in Thailand’s gross domestic product (GDP) slowed in 2023 and missed forecasts, said the National Economic and Social Development Council (NESDC) in a report.

Thailand’s economy only expanded 1.9% last year, missing both industry experts and government forecasts and slowing from the 2.2% expansion seen in 2022.

In the fourth quarter of 2023, the economy contracted 0.6% from the prior three-month period.

Other sectors that saw a significant decrease are total investments, which dropped by 0.4% in the fourth quarter compared to the 1.5% growth in the previous quarter; and the agriculture, forestry, and fishing sector, which recorded a 0.8% growth compared to the 1.1% increase previously.

On the other hand, the accommodation and food service activities sector expanded 10%, on top of the 15% acceleration in the last quarter. The transportation and storage sectors likewise expanded 6.7%.

In 2024, Thailand’s economy is expected to increase by 2.2% to 3.2% due to the continuous tourism recovery, private consumption and private investment growth, and global economic recovery.

For more details on Thailand’s economic performance for 2023, see the NESDC’s full report here.