Thai economy sees stunted growth despite tourists’ return

Thailand’s economy grew 2.5 percent in the second quarter as returning foreign tourists failed to offset high inflation and concerns over regional tensions, the country’s main economic agency said Monday.

Southeast Asia’s second-largest economy was hit hard during the pandemic, though visitor numbers are slowly improving with the relaxation of travel rules since May.

But the Ukraine war and now tension over Taiwan could put any economic recovery at risk, Thailand’s National Economic and Social Development Council (NESDC) warned.

“We have to continue monitoring to see how long counteraction from China over Taiwan will last,” NESDC Secretary General Danucha Pichayanan said.

“The relaxing of our Covid controls, the recovery of tourism are factors that support the growth.”

The agency said that gross domestic product rose 2.5 percent in April-June compared to the same period a year ago -- well below the anticipated growth of three percent.

The NESDC also revised the expected full-year growth rate from 2.5-3.5 percent to 2.7-3.2 percent.