KONTAN.CO.ID - BANGKOK. Thailand's economy expanded at the fastest pace in a year in the second quarter as eased COVID-19 restrictions boosted activity and tourism, but multi-year high inflation and China's slowdown remain a drag on the nascent recovery. The government slightly revised its 2022 economic growth forecast to 2.7% to 3.2% from an earlier 2.5 to 3.5% growth range, citing a rebound in the crucial tourism sector, increased consumption and exports. Last year's growth of 1.5% was among the slowest in Southeast Asia. The economy grew an annual 2.5% in the June quarter, the fastest since the second quarter of 2021, data from the National Economic and Social Development Council showed on Monday.
That compared with a forecast 3.1% rise in a Reuters poll and upwardly revised 2.3% growth in the March quarter. Read Also: Saudi Arabia's Kingdom Holding Invests in Russian Energy Companies Southeast Asia's second-largest economy is making a steady recovery after the lifting of pandemic curbs but the absence of Chinese visitors and China's slowdown have continued to pressure growth at a time when Thailand has started to raise rates to tackle inflation. "Thailand’s economy kept rebounding in the second quarter of the year on the back of a reopening boost. Although higher commodity prices will drag on prospects, with the tourism sector enjoying a decent rebound, we expect the recovery to continue over the coming months," Capital Economics said in a note. However, it expects inflation to weigh on consumer spending and investment, while exports will be restrained by a slowdown in the global economy.
