During the second quarter of 2023, Thailand witnessed a deceleration in its economic rebound, with the GDP growth slipping from a 2.6% year-on-year increase in Q1 to just 1.8%. This report, released by the National Economic and Social Development Council on August 21, significantly missed the consensus forecast of 3.1% and anticipated growth of 2.9%. Post seasonal adjustments, the quarter’s economic growth merely nudged 0.2%. This sluggish performance and persistent economic challenges led BMI, a venture by Fitch Solutions, to scale back its annual growth prediction for the current year from 3.0% to 2.8%. This is notably lower than the consensus forecast of 3.6% and the 3.6% average recorded between the years 2010 and 2019. To highlight a few weak spots in the economy, government consumption suffered a 4.3% annual contraction in the second quarter, primarily due to prolonged political instability post the May general elections. Tight credit conditions and…
