Tourism fuels Thai economy, worries about inflation and conflict

16

Thailand’s economy grew in the second quarter of this year. This is partly due to the tourism sector, which has picked up again after the corona pandemic. However, there are still concerns about the conflicts in Ukraine and Taiwan. Inflation also reached a record high of 7.7 percent in June.

The economy grew by 2.5 percent compared to the same period last year. The easing of Corona measures in Thailand supported that growth, according to the National Economic and Social Development Council (NESDC), the body that advises the Thai government on socio-economic policies. The council adjusted the expected growth rate for this year from 2.5 to 3.5 percent to 2.7 to 3.2 percent.

The NESDC is afraid of escalation of the war in Ukraine and is concerned about the tensions between China and Taiwan. Both conflicts lead to a global stagnation of economic growth, which makes Thailand even more dependent on tourism. The Thai export sector is also cooling down.

LEAVE A REPLY

Please enter your comment!
Please enter your name here