Tourism is one of the major sectors of Thailand’s economy. Tourism was struggling to recover as the global economy slid into a recession. The issues were compounded by the travel ban imposed by the Chinese government in the wake of the fresh Covid infections.
Tourism seems to be recovering as Chinese tourists flock to Thailand. The country’s economy was struggling and failed to match the recovery shown by its Southeast Asian neighbors. A fresh influx of tourists has allowed the economy to rebound.
The Thai economy reported a growth of 2.3% between January and March this year. Compared to 1.4% in the previous quarter, the economy seems to be getting stronger. The forecast for quarterly GDP growth is 1.4%. Unlike the previous quarter when the GDP was expected to contract by 1.5%.
Thailand surpassed its target of 6 million tourists for 1Q23 with 6.15 million visitors coming to the nation.
Times ahead are still going to be difficult however as the world still grapples with inflation.
“Growth was mainly driven by the ongoing recovery in foreign tourism as Chinese visitors began to make a comeback following China's reopening, as well as a private consumption boost,” noted Han Teng Chua, an economist at DBS.
Even inflation data seems to indicate a recovery. There has been a sharp fall in the inflation rate, which was at its 14-year peak of 7.86% in August 2022. The inflation has come down to 2.67% and consumer spending has increased.
The projected annual GDP growth is 3.7% this year, which is above the Bank of Thailand’s expectation of 3.6% growth.
