The National Economic and Social Development Council (NESDC) has decided to cut Thailand’s gross domestic product (GDP) growth projection for 2022 to between 2.5% and 3.5%, or an average of 3%, from earlier projection of between 3.5% and 4.5%, due to uncertainties over the conflict in Ukraine, according to NESDC Secretary-General Danucha Pichayanan.

Danucha said, however, that growth in the first quarter of this year was 2.2%, thanks to the easing of lockdown measures and the resumption of various economic activities, with consumption and exports expanding 3.9% and 10.2% respectively, but construction activity reduced by 5.5%.

He added that the NESDC has been closely monitoring the situation in Ukraine, which has affected the energy and production sectors, especially fertilizer and wheat, the prices of which have jumped up.

Export and tourism remain the two main engines of Thailand’s economic growth.

In March, the Bank of Thailand cut the GDP projection for the whole year from 3.4% to 3.2%, to reflect the impacts of the war in Ukraine, which caused a surge in energy and commodities prices.  The growth projection for 2023 was also slashed, from 4.7% to 4.4%, according to a statement from the central bank.