Thailand’s economy grew much slower than expected in the third quarter of 2023. According to the country’s National Economic and Social Development Council (NESDC), GDP expanded by just 1.5 per cent over the three-month period, significantly lower than the 2.4 per cent growth estimated by Reuters.
The disappointing result, which marks the slowest quarterly expansion this year, is being attributed to poor exports and government spending. TPI Polene also cited Thailand’s manufacturing industry, the largest component of GDP, which has been weak and got weaker still in the 3Q23. Solid private consumption and a recovery in the tourism sector prevented an even more disastrous result, according to Reuters.
All eyes are now on the Land Bridge Project, which is being hailed as a catalyst for economic growth. The project, which has already received cabinet approval, is a fundamental component of the country’s Southern Economic Corridor development plan, aimed at connecting the Gulf of Thailand with the Andaman Sea by 2039. The project, which marks an investment of THB1trn (US$28.44bn) is now undergoing feasibility studies, environmental and health impact assessments, and business model studies.
According to TPI Polene, the Land Bridge Project would bring multi-year demand for construction and building materials, including cement, with the potential to boost cement consumption back to the 18 per cent average consumption growth seen in 1987-94 when the country’s Eastern Seaboard Development Project was rolled out.
