Thailand’s economy showed a slow growth for the second consecutive quarter, with a 1.5% year-on-year expansion. This is lower than the anticipated 2.4% by economists and the 1.8% growth experienced in the previous quarter. Observers believe that the trend is anticipated to continue.
According to a DBS economist, public spending had narrowed in the midst of populist policies, even as private consumption and tourism remained strong. The country’s economy had shown signs of weakening, despite optimism in the market sentiment due to the consecutive quarters of weak production.
Additionally, the Bank of Thailand had raised its key interest rate for the eighth time in September, and analysts expect that it will continue to pick up next year. Meanwhile, Nomura analysts anticipate a potential cut in the policy rate in 2024 because of a weak Q3 GDP outcome. This decision would have an impact on the Thai baht, which has seen a decline of 1.3% against the dollar this year and is projected to fall for the fourth time in a year.