In 2022, Thailand’s domestic product increased by 2.6%, which was an improvement over the 1.5% growth recorded in the previous year.
However, this growth fell short of forecasts, as a robust rebound in domestic consumption and tourism was unable to make up for the weakening export sector.
Neighboring countries, and Thailand competitors, have outperformed the second-largest economy in Southeast Asia: Malaysia and the Philippines both experienced growth of 8.7% and 7.6%, with Malaysia benefiting from an increase in electronics exports in the fourth quarter.
Thailand’s biggest trading partners saw a decline in demand for its exports last year, which had been keeping the country on a favorable economic track.
Singapore, like Thailand, also reduced its forecast for yearly economic growth from 3.8% to 3.6%, below the 8.9% reported in 2021, as a result of poor external demand and the impact of inflation on consumption.