BENGALURU- Thailand’s economy gained momentum in the last quarter supported by government spending and a recovery in tourism that helped offset weak demand from China, a Reuters poll of economists showed.
Southeast Asia’s second-largest economy likely expanded 2.6 percent in July-September compared to the same period a year earlier, according to the median prediction of 20 economists in the Nov. 8-15 poll.
That would mark an increase from 2.3 percent growth in the previous quarter and its fastest pace in one-and-a-half years.
Forecasts for the data due on Nov. 18 ranged from 2.0 percent to 3.3 percent.
On a quarterly basis, gross domestic product (GDP) likely grew a seasonally adjusted 0.8 percent, unchanged from the second quarter, according to a smaller sample of forecasts.
“For third-quarter growth…in terms of government spending, both consumption and investment will see a rebound…tourism continues to do well and is one of the drivers for the export sector,” said SyetarnHansakul, senior analyst at the Economist Intelligence Unit.
“The ongoing recovery in the export sector, both in goods and services, will continue to be positive.”
Thailand’s tourism-dependent economy has seen sluggish growth due to low investment, weak employment and high household debt.
Thai Finance Minister Pichai Chunhavajira is considering additional stimulus measures which, along with a $14 billion cash handout scheme launched in September, could support a recovery. Tourism has also been regaining strength and the country forecasts close to 36 million foreign arrivals in 2024, up from nearly 29 million last year.
