BANGKOK - Thailand's economy enjoyed healthy expansion in the third quarter, officials said Monday, with the return of international tourists helping to offset persistently high inflation.

Southeast Asia's second-largest economy was battered by the pandemic, but the kingdom's reopening earlier this year saw the service sector record an 87 percent year-on-year increase, official data showed.

Thailand's National Economic and Social Development Council (NESDC) recorded a 4.5 percent year-on-year rise in gross domestic product in July-September, projecting this year's overall growth at 3.2 percent while forecasting 3.0/4.0 percent for 2023.

"The service sector continues to grow due to tourism re-opening earlier in the year," said Danucha Pichayanan, NESDC secretary–general, adding private consumption increased 9 percent.

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Thailand expects to generate around 570 billion baht ($15.8 billion) in tourism revenue this year, officials said, after welcoming some 10.2 million visitors since reopening -- still down from the roughly 40 million pre-pandemic.

But Danucha said the signs of recovery were there, with the kingdom pinning hopes on China's potential relaxation of its strict Covid travel rules.

"We believe that China is likely to relax traveling restrictions in the second half of next year," he said.

Chinese visitors had made up a huge part of the kingdom's tourism economy and accounted for some 28 percent of all arrivals, according to Bloomberg.

Officials said they anticipated roughly 23 million tourists in 2023, predicting 1.2 trillion baht in generated revenue.

However, the country -- like many others -- is still facing stubbornly high inflation, sitting just below six percent but off 14-year highs touched recently.

"Inflation, the hike in interest rates and conflicts which have affected the energy prices remain factors that are impacting several countries," Danucha noted.

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