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Bloomberg
A revival in tourism helped Thailand expand at the fastest pace in more than a year last quarter, even as finer details of the economic data support the case for the central bank to go slow on monetary policy tightening.
Gross domestic product rose 4.5% in July-September from a year ago, the National Economic and Social Development Council said Monday, matching the median estimate in a Bloomberg survey. Compared with the previous three months, output expanded 1.2%, beating expectations for a 0.8% increase.
That performance lifts expansion in the first nine months of the year to 3.1%—a pace that will see Thailand trailing neighbors in Southeast Asia. Its position as a regional laggard in GDP expansion will likely goad the Bank of Thailand to stick with its gradual approach to raising interest rates to tame inflation.
Government spending and investment decreased during the quarter, while private consumption increased. Goods, services exports growth quickened 9.5% year-on-year, compared with 8.5% in the previous quarter, data showed.
The baht weakened 0.5% to 36.02 per dollar as of 10:15 a.m. in Bangkok. The currency, which has fallen more than 6% against the US dollar so far this year, is supporting post-pandemic tourism recovery.
The cheaper baht is adding to the appeal of the country as a value for money destination.