The Council of Ministers reveals that GDP in the first quarter of 2022 will increase by 2.2%.

The NESDB reported to the Cabinet that GDP in the first quarter of 2022 increased by 2.2%, while the outlook for the economy for the year 2022 increased by 2.5-3.5%.

Ms. Ratchada Thanadirek, Deputy Spokesperson for the Prime Minister’s Office Revealed after the Cabinet meeting (Cabinet) on May 17, 2022 that the Cabinet acknowledged the economic growth in the first quarter and the trend of 2022 as proposed by the Office of the National Economic and Social Development Council, namely Gross Domestic Product. Domestic (GDP) Q1 2022 increased 2.2% classified as

  • Private consumption increased 3.9%.
  • Total investment increased by 0.8%.
  • Government consumption rose 4.6%.
  • Product export volume increased by 10.2% (USD export value increased 14.6%)
  • The volume of exports of services increased by 30.7%.
  • Agriculture sector increased 4.1%.
  • Industrial sector increased by 1.9%.
  • Trade sector increased by 2.9%.
  • Accommodation and food service sectors rose 34.1%.
  • Transportation sector increased by 4.6%.
  • Electricity and gas sector increased by 0.2%
  • Private construction sector fell 5.5%.

Thailand economic outlook for 2022, gross domestic product (GDP) growth is 2.5-3.5%, close to the global economic growth projection of 3.5%. Other sectors of the Thai economy are expected to grow, such as private consumption by 3.9%. Private investment 3.5%, public investment 3.4%, export value (USD term) 7.3% and inflation 4.2 – 5.2% for supporting factors in 2022 such as

1. Continued relaxation of measures to control the spread of COVID-19, along with the progress of vaccine distribution.

2. The income base of households and businesses expanded in line with the industrial production and export sectors.

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3. Relaxation of measures to accept foreign tourists by abolishing Test&Go measures

As for limitations and risk factors in 2022 such as

1. The high level of private debt burden will hinder the recovery of domestic demand. Including the labor market has not fully recovered.

2. Covid-19 virus New species may lead to another wave of epidemics.

3. Prolongation of the conflict between Russia and Ukraine and sanctions

4. China’s economic slowdown trend

In addition, the government has guidelines for economic management in 2022 as follows:

1. Maintaining economic momentum from household expenditures such as

  • The monitoring, surveillance, prevention and control of the outbreak of COVID-19 so that the economic activities of households and businesses can continue to normalize.
  • Taking care of and solving household debt problems in order not to limit the expansion.

2. Supporting the revitalization of tourism and related services such as

  • Promotion of domestic tourism taking into account the distribution of benefits to secondary urban areas including medium and small businesses
  • Campaign for Thai tourists to travel more in the country

3. Maintaining the driving force from product exports

4. Promotion of private investment such as

  • Acceleration for entrepreneurs who have been approved and issuing BOI certificates during the year 2019-2021 to make real investments, especially investment projects in the targeted industries
  • Solving problems that foreign investors and entrepreneurs see as obstacles to investment and business operations and business operations including the problem of labor shortage in the manufacturing sector
  • Promotion of investment in the Eastern Economic Corridor (EEC) that has already been carried out including driving special economic corridors in each region
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5. Driving public spending and investment, such as expediting the disbursement of the annual budget expenditure 2022 to at least 92.5 percent of the total budget framework. and investment budget for state enterprises to be at least 70 percent of the total budget including disbursement of projects under the Royal Decree Loan amount of 1 trillion baht and 500 billion baht in the rest

6. Supervision of agricultural production and farmers’ income

7. Monitoring, surveillance and preparation of measures to support global economic and financial volatility

Source of news: Thai government

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The Council of Ministers reveals GDP in the first quarter of 2022 to increase 2.2% | News by Thaiger