The National Economic and Social Development Board announced that Thailand’s GDP in the second quarter of 2024 expanded by 2.3%, with improved government investment. The GDP for the whole of 2024 is estimated to grow by 2.3-2.8%. Keep an eye on if the digital wallet moves forward, both the source of funds and the payment system must be considered.
Mr. Danucha Pichayanan, Secretary-General of the National Economic and Social Development Council (NESDB), revealed the state of the Thai economy in the second quarter of 2024, with the gross domestic product (GDP) expanding by 2.3%, accelerating from the 1.6% expansion in the first quarter of the year. After adjusting for seasonal effects, the Thai economy in the second quarter expanded by 0.8% from the first quarter. In the first half of 2024, the Thai economy expanded by 1.9%, decreasing from the same period of the previous year at 2.2%, benefiting from private consumption that expanded by 4%, government consumption that expanded by 0.3%, exports that expanded
in this quarter expanded by 1.9%, and services by 19.8%, but total investment still contracted by 6.2%.
In terms of spending, government consumption, and exports of goods and services, they have improved, and private consumption has continued to expand well, while private and public investment has declined.
On the production side, the industrial goods production sector has expanded again, the accommodation and food services sector, the wholesale and retail trade sector, the transportation and storage sector have continued to expand, while the construction sector and the agriculture sector have adjusted downward. The global economy in the second quarter of 2024 has continued to expand in line with the expansion of major economies, led by the United States and China, while emerging and developing economies have continued to expand well in line with the recovery of global trade.
For the GDP forecast for 2024, it is estimated at 2.3-2.8%, with a median of 2.5%, down from the previous estimate (20 May 2024) of
2.0-3.0%, partly due to increased government investment due to better disbursement, while core inflation increased by 0.4-0.9% and the current account balance was at 2.3%, supported by continued recovery in the tourism sector, satisfactory expansion of domestic consumption, increased momentum from government spending and investment in the second half of the year, and a gradual expansion of the export sector in line with the recovery of global trade. Risk factors include high household and business debt and strict credit standards, climate change, and volatility in the global economy and the world.
Mr. Danucha added more about the policy of adding 10,000 baht via digital wallet, stating that it will depend on how the government will proceed. If the government continues with this measure, it will depend on how much it has been changed. Originally, there were 2 important proposals: the source of the money from the 2024 budget that has already been spent and the 2025 budget that will come in on October 1st. We w
ill have to look at what impact it will have. Another issue is the spending system. This issue will need to be discussed at the policy level and opinions from various sectors will be sought. However, if this measure is not implemented, other measures will need to be implemented to support the economy, especially to help low-income earners. He believes that the government will need at least one measure to help the people.
While the measures to solve the problem of bad debt must be discussed at the policy level, together with the Bank of Thailand and the Ministry of Finance, by finding more targeted measures, which have already been discussed to some extent, and we must wait for clarity soon.
Source: Thai News Agency