Thailand announced GDP growth in the first quarter of 2023
The National Economic and Social Development Council (NESDC) announced that the gross domestic product (GDP) grew by 2.7% in Q1/2023, up from 1.4% in Q4/2022. Positive impacts include increased private sector spending (+5.4%) – services (+11.1%), goods (+2.3%); public investment (+4.7%) and private (+2.6%); manufacturing sector – agriculture, forestry and fishing (+7.2%), accommodation services (+34.3%),
However, Thailand also faces many negative impacts including reduced government spending (-6.2%), export volume (-6.4%) and export value (-4.6%). decrease – commodity groups that recorded a sharp decrease include refrigeration goods (-27.3%), cars (-29%), pickup trucks (-5.5%), air conditioners (-27.3% ), cosmetics (-10.3%), sugar (-33.3%), rice (-24.7%), durian (-218.9%), manufacturing sector (-3.1% ) – improved but not much compared to the fourth quarter of 2022 (-5%).
NESDC also maintained its forecast for Thailand’s economic growth in 2023 at between 2.7-3.7%. Favorable factors include a recovery in tourism; increased private spending; and increased public-private investment. In 2023, the Thai government needs to strengthen the private sector, increase private investment, strengthen the tourism and service industries, support agricultural production and people’s income; and maintain economic and political conditions after the election.
Airline revenue surges
Airlines’ revenue increased sharply in the first quarter of 2023 as tourists increased again in the first quarter of 2023. It is expected that Thailand will welcome 30 million visitors in 2023, a sharp increase compared to 11.2 million visitors in 2022. The opening of markets by countries has promoted trade activities and encouraged travel activities. aviation between countries.
In related developments, in order to diversify tourism promotion methods, the Tourism Authority of Thailand (TAT) has just signed a Memorandum of Understanding (MOU) with Bitkub Metaverse to open an online office on the Metaverse platform. , expected in the third quarter of 2023. The potential target group aims to attract young tourists, accounting for 25-30% of total visitors to Thailand with a digitally oriented lifestyle. Bitkub Metaverse plans to attract 300,000 customers in the first quarter of 2023 – around October 2023; 100,000 customers will become tourists.
On the Metaverse platform, customers will experience a variety of activities including the TAT History Exhibition and scenic areas including Wat Arun Ratchawararam and Wat Phra That Doi Suthep – customers can purchase tickets directly on the platform . TAT also hopes to attract 100 travel businesses, equivalent to 20-25 businesses from each region, to display products on the online platform.
Thailand actively attracts Korean investment
Thailand’s Board of Investment (BOI) will hold an investment roadshow in South Korea to attract more businesses as part of its five-year investment promotion plan. The roadshow is scheduled to run from May 15-18. One of the focuses of the program will be Thailand’s electric vehicle manufacturing and charging industry. Thailand’s National Electric Vehicle Policy Committee has said it wants electric vehicles to reach a 50% market share by 2030 as part of its efforts to make Thailand a regional electric vehicle hub.
Thailand and South Korea have a history of diplomatic relations of over 60 years. Over the past 10 years, South Korean investors have applied for incentives on 322 projects worth 91 billion baht. The projects are related to auto parts, electrical appliances, digital technology, steel and other metals. The BOI has also stepped up investment promotion in smart electronics, semiconductors, and the Bio-Circular-Green (BCG) economy model that the government is promoting.
Food exports forecast to grow strongly in 2023
Thailand’s food exports currently rank 15th in the global market, with a market share of 2.25%. The value of food exports is expected to increase by 2.1% to 1.5 billion baht ($44.31 billion) this year, thanks to recovering global demand and China’s opening up. Food exports typically account for 14.6% of total exports annually. In the first quarter of 2023, food exports grew by 10% year-on-year to 346 billion baht, according to the Thai Chamber of Commerce, the Federation of Thai Industries and the National Food Institute.
However, in the second quarter of 2023, food exports are expected to decrease and will recover in the last 6 months of 2023. Food shortages in the supply chain contribute to increased demand in many countries recovering from the pandemic. COVID-19. Unfavorable factors for exports include the appreciation of the Baht and rising energy costs.
Source: Vietnam Trade Office in Thailand