Thailand’s Economic Overview in Q3/2024
Gross Domestic Product (GDP): The nominal GDP was recorded at $515.8 billion, with a per capita GDP of $7,345.6.
Inflation Rate: Stood at 0.8%, indicating stable price levels during the quarter.
Unemployment Rate: Slightly increased to 1.07%, up from 1.01% in the previous quarter.
Private Consumption: Grew by 4.0%, though this was a deceleration from the 6.9% growth in the prior quarter. The slowdown was evident across various sectors, including services and non-durable goods.
Government Consumption: Increased by 0.3%, recovering from a 2.1% contraction in the previous quarter. This uptick was primarily due to higher social transfers and employee compensation.
Investment: Total investment declined by 6.2%, marking the third consecutive quarter of contraction. Private investment decreased by 6.8%, mainly due to reduced spending on machinery and equipment. Public investment also fell by 4.3%, though this was an improvement from the 27.7% decline in the prior quarter.
Exports: The export sector showed positive momentum, with a total value of $73.32 billion. Key export commodities included cars and parts, automatic data processing machines, and precious stones and jewelry.
Imports: Total imports were valued at $67.78 billion, with crude oil, electrical integrated circuits, and machinery and parts being the primary import items.
Trade Balance: The trade surplus stood at $15.5 billion, reflecting a robust external sector performance.
The tourism industry continued its recovery, welcoming 8.13 million international tourists in Q2 2024. China remained the leading source of tourists, accounting for 20.70% of arrivals, followed by Malaysia (15.59%) and India (6.97%).
The National Economic and Social Development Council (NESDC) projects that Thailand’s GDP will grow between 2.3% and 2.8% for the entire year of 2024. This optimistic outlook is based on anticipated improvements in tourism, exports, and domestic consumption. However, challenges such as high household debt and global economic uncertainties persist.
In summary, Thailand’s economic performance in the second quarter of 2024 indicates a steady recovery, supported by key sectors such as exports and tourism. Continued focus on stimulating domestic consumption and investment will be crucial to maintain this positive trajectory in the upcoming quarters.