Thailand’s economic gross domestic product (GDP) shrank 0.3% during the third quarter, compared to an increase of 0.1% during the second quarter and 7.6% during the same quarter of last year, mainly due to belt-tightening by consumers in the wake of a surge in COVID-19 infections, said Secretary-General of the National Economic and Social Development Council (NESDC) Danucha Pichayanan today (Monday).

For the third quarter of this year, consumption by the private sector contracted 3.2%, compared to a 2.5% increase in the public sector. Investment in the private sector increased 2.6%,while public sector investment shrank 6%. Exports increased by 15.7% in value, while imports increased 31.8%.  The current account deficit was registered at 3.6% of GDP. The inflation rate was at 0.7%.

Danucha is, however, optimistic with Thailand’s growth rate for the whole year being forecast to increase by 1.2%, while the current account deficit is expected to register 2.5% against GDP with a 1.2% inflation rate for the whole year.

For next year, the NESDC forecasts Thailand’s growth rate to increase to 3.5-4.5%, or an average of 4%, due to the slow recovery in the tourism sector, export expansion, disbursement of budgets and a recovery in domestic demand.

Domestic consumption and private sector investment are forecast to expand by 4.3% and 4.2% respectively, while exports are expected to increase by 4.9% in value, with the inflation rate averaging 0.9-1.9%.