Thailand’s economy has grown in the second quarter of this year. This is partly due to tourism, which has picked up again after the corona pandemic.
However, concerns remain 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. According to the National Economic and Social Development Council (NESDC), the relaxation of corona measures in Thailand has supported that growth. This body advises the Thai government on socio-economic policy.
As a result, the council revised the projected growth rate for this year from 2.5 to 3.5 percent to 2.7 to 3.2 percent.
The NESDC fears an escalation of the war in Ukraine and is concerned about the tensions between China and Taiwan. Both conflicts lead to a worldwide economic growth stagnation, making Thailand even more dependent on tourism. As a result, the Thai export sector is also cooling down.