Thailand’s Economy Set to Bounce Back From Shock Contraction as Tourism Booms
- Nomura maintains 2023 GDP growth forecast of 4% on tourism
- Slowing exports, public spending are seen as major headwinds
Tourists on Patong Beach in Phuket.
Photographer: Andre Malerba/BloombergThis article is for subscribers only.
Thailand’s economy is set to bounce back from a shock contraction in the fourth quarter as foreign tourist arrivals are likely to surprise on the upside and counter headwinds to merchandise exports from a global slowdown.
Southeast Asia’s second-largest economy will expand 4% this year even after the “sharp and surprise sequential contraction” in the fourth quarter, according to Nomura Holdings Inc. While Standard Chartered Bank Plc sees a gross domestic product expansion of 4.5% this year, DBS Bank Ltd. forecasts a growth rate of 3.4%, up from 2.6% last year.