*
Q1 GDP +2.7% y/y vs +2.3% in Reuters poll
*
Q1 GDP +1.9% q/q sa vs +1.7% in poll
*
2023 GDP growth outlook unchanged at 2.7-3.7%
*
Agency keeps forecast for 2023 export to fall 1.6%
*
Thai opposition parties look to form government
(Recasts, adds comments from economists throughout)
By Orathai Sriring and Kitiphong Thaichareon
BANGKOK, May 15 (Reuters) - Thailand's economy expanded
faster than expected in the first quarter due to a recovery in
tourism, data showed on Monday, while investors braced for
political uncertainty after the opposition secured a stunning
election victory on Sunday.
The tourism-reliant economy's recovery has lagged its
regional peers due to COVID-19, but gathered steam in recent
months as Chinese visitors returned. The revival of the sector,
which accounts for 11-12% of its gross domestic product (GDP),
is expected to help offset the impact from declining exports.
Thailand's state planning agency reiterated its outlook for
a 2.7%-3.7% GDP growth in 2023, versus 2.6% last year, saying
the post-election atmosphere should be kept positive to build
investor confidence.
Southeast Asia's second-largest economy grew 2.7% in the
January-March period from a year earlier, versus a 1.4% growth
in the previous quarter, data from the National Economic and
Social Development Council (NESDC) showed.
On a quarterly basis, GDP rose a seasonally adjusted 1.9%,
from a revised 1.1% contraction in the fourth quarter of 2022.
Economists in a Reuters poll had expected GDP to expand 2.3%
year-on-year in January-March and 1.7% quarter-on-quarter.
The data, however, failed to lift the stock market that dropped as much as 1.3% in early trade due to concerns over
political uncertainty and policy pledges after the election. The
baht pared earlier gains.
Thailand's political heavyweights were set for an intense
round of deal-making on Monday after the election that delivered
big gains for the opposition over parties allied to the military
but with no clear indication of alliances taking shape.
"What needs to be done as quickly as possible is the
formation of a stable government that will quickly continue
policies that support businesses and the people," said Chaichan
Chareonsuk, chairman of the Thai National Shippers' Council.
Several analysts echoed the view, saying investors were
likely to stay on the sidelines as they wait for a new
government and clarity on its policies.
"Until political clarity is attained, the private sector
will wait and see before deciding to invest, especially with the
concerns of pledges to raise the minimum wage," said Kobsidthi
Silpachai, head of capital markets research of Kasikornbank.
Meanwhile, the NESDC maintained its forecast for 2023
foreign tourist arrivals in Thailand at 28 million.
The country beat its tourism target in 2022 with 11.15
million visitors. Pre-pandemic 2019 saw a record of nearly 40
million foreign tourists, who spent 1.91 trillion baht ($56
billion).
The NESDC also kept its 2023 forecasts for goods exports to
drop 1.6% and headline inflation to be between 2.5% and 3.5%.
($1 = 33.85 baht)
(Reporting by Orathai Sriring, Kitiphong Thaichareon and
Satawasin Staporncharnchai; Editing by Himani Sarkar)
