© Reuters. Individuals store at a grocery store inside a division retailer in central Bangkok, Thailand, December 28, 2016. Image taken December 28, 2016. REUTERS/Athit Perawongmetha/file photograph
By Orathai Sriring and Kitiphong Thaichareon
BANGKOK (Reuters) -Thailand’s economic system unexpectedly contracted within the fourth quarter of 2023 from the third, including to stress for an rate of interest minimize as dangers develop for the tourism-driven economic system from excessive family debt and China’s slowdown.
Gross home product (GDP) fell 0.6% within the October to December quarter on a seasonally adjusted foundation, the planning company stated on Monday, down from a revised 0.6% rise within the third quarter. The primary quarterly contraction in a 12 months compares with a 0.1% rise forecast in a Reuters ballot.
From a 12 months earlier, the economic system grew 1.7%, barely sooner than a revised 1.4% development within the third quarter however slower than a forecast 2.5% enlargement.
Slowing financial momentum raises the probabilities of a price minimize on the central financial institution’s subsequent coverage overview on April 10, after it left this month the important thing price regular at 2.50%, the very best in additional than a decade, in a break up vote. Two dissenters favoured a price discount.
State planning company chief Danucha Pichayanan instructed a press convention that financial coverage ought to help the economic system and a fast price minimize would assist.
Prime Minister Srettha Thavisin and his authorities have repeatedly urged the central financial institution to chop rates of interest, saying they’re hurting shoppers and companies and that the economic system is in disaster.
The Financial institution of Thailand (BOT) has stated price cuts will do little to revive Southeast Asia’s second-biggest economic system if structural points persist.
The economic system expanded 1.9% in 2023, slower than anticipated, and fewer than a revised 2.5% in 2022.
For 2024, the state planning company expects development to return in between 2.2% and three.2%, decrease than the two.7%-3.7% it projected in November.
Exports in 2024 had been anticipated to develop 2.9%, decrease than a earlier estimate, whereas headline inflation was seen at 0.9%-1.9%, in contrast with the central financial institution’s goal vary of 1% to three%.
The economic system shouldn’t contract within the first quarter of 2024 if exports get well, the company stated.
