Thai Q2 GDP growth slows sharply amid weak global demand, govt cuts outlook
Thai Q2 GDP growth slows sharply amid weak global demand, govt ... Reuters.com
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Summary
- Q2 GDP +1.8% y/y vs +3.1% in Reuters poll
- Q2 GDP +0.2% q/q sa vs +1.2% in poll
- 2023 GDP growth outlook cut to 2.5-3.0% from 2.7-3.7%
- Lowers 2023 export forecast to -1.8% from -1.6%
Thai Q2 GDP growth slows sharply amid weak global demand, govt cuts outlook
Thailand’s economy grew at a much slower-than-expected pace in the second quarter, data showed on Monday, as weak exports and slower investment undercut strength in tourism and prompted the government to downgrade its 2023 growth forecast.
Sustainable Development Goals (SDGs)
Thailand’s economic slowdown in the second quarter highlights the challenges in achieving the Sustainable Development Goals (SDGs). The weak global demand and decline in exports have negatively impacted the country’s economic growth, which in turn affects the progress towards SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation, and Infrastructure).
Economic Performance
Thailand’s gross domestic product grew 1.8% in the April-June period from a year earlier, well below the 3.1% expansion expected by economists. The decline in export volumes and manufacturing output, as well as the decrease in government spending and fixed asset investment, have contributed to the slower economic growth.
Impact on Monetary Policy
The weak economic performance and lower growth outlook may influence the monetary policy decisions of the Bank of Thailand. With inflation below target and signs of a faltering economic recovery, further rate hikes are unlikely in the near future. The central bank may choose to hold the key rate steady or even consider a rate cut to stimulate economic growth.
Political Uncertainty
The prolonged political uncertainty in Thailand, following the elections in May, has added to the challenges faced by the economy. The transition to a new government and potential problems arising from it could further impact investor confidence and hinder economic growth.
Outlook
The government has revised down its 2023 GDP growth forecast to between 2.5% and 3.0% from the previous range of 2.7% to 3.7%. Capital Economics has also downgraded its annual 2023 GDP forecast sharply to 3.0% from 4.5% previously. The focus will now be on implementing measures to stimulate economic growth and address the challenges in achieving the SDGs.
SDGs, Targets, and Indicators
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 8: Decent Work and Economic Growth
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 17: Partnerships for the Goals
2. What specific targets under those SDGs can be identified based on the article’s content?
- SDG 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 percent gross domestic product growth per annum in the least developed countries.
- SDG 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product, in line with national circumstances, and double its share in least developed countries.
- SDG 17.17: Encourage and promote effective public, public-private, and civil society partnerships, building on the experience and resourcing strategies of partnerships.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
- GDP growth rate (year-on-year and quarter-on-quarter)
- Export volumes
- Manufacturing output
- Government spending
- Fixed asset investment
- Tourism revenue
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | SDG 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 percent gross domestic product growth per annum in the least developed countries. | GDP growth rate (year-on-year and quarter-on-quarter) |
| SDG 9: Industry, Innovation, and Infrastructure | SDG 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product, in line with national circumstances, and double its share in least developed countries. | Manufacturing output |
| SDG 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product, in line with national circumstances, and double its share in least developed countries. | Fixed asset investment | |
| SDG 17: Partnerships for the Goals | SDG 17.17: Encourage and promote effective public, public-private, and civil society partnerships, building on the experience and resourcing strategies of partnerships. | Tourism revenue |
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: reuters.com
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