Thailand's Economic Growth Accelerates, but $14 Billion Stimulus Uncertainty Looms
TMTPOST--Thailand's economy posted its fastest growth in five quarters, driven by robust tourism and export activities. However, the outlook remains uncertain due to a recent leadership change and questions surrounding a proposed $14 billion stimulus package.
The National Economic and Social Development Council reported on Monday that the country's gross domestic product (GDP) grew by 2.3% in the second quarter of 2024 compared to the same period last year. This figure slightly exceeds the 2.2% growth forecasted in a Bloomberg News survey and represents an improvement from the revised 1.6% growth in the first quarter.
On a quarter-on-quarter basis, Thailand's economy expanded by 0.8%, which falls short of the 1% growth expected by analysts. This growth is also lower than the revised 1.2% increase recorded in the January-March period.
Despite the stronger-than-anticipated annual growth, concerns remain about the sustainability of this recovery. The future of a planned cash handout aimed at boosting consumer spending is uncertain following the recent change in political leadership.
Thailand continues to trail behind its regional peers, with annual growth still below 5%. The new political leadership may also reignite calls for the central bank to lower interest rates to support economic growth.
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