World Bank cuts Thai growth to 2.8% on weaker exports
THAILAND’S economic growth is expected at 2.8 per cent this year before accelerating to 3.0 per cent in 2025, the World Bank said on Monday, on account of weak exports and a delayed budget.
The growth outlook for 2024 and 2025 was reduced from 3.2 per cent and 3.1 per cent respectively, as forecast in December.
South-east Asia’s second-largest economy expanded 1.9 per cent in 2023 and unexpectedly shrank 0.6 per cent in the final quarter of 2023 from the third.
Thailand’s central bank in February also lowered its 2024 growth outlook to 2.5 per cent to 3.0 per cent from 3.2 per cent.
The cut stems from global trade slowing while the delayed budget slowed government spending, World Bank senior economist Kiatipong Ariyapruchya, told reporters in a virtual briefing.
Dimmer export and public investment prospects also attributed to new outlook, the World Bank said in statement.
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The shipper’s council expects exports to grow 1 per cent to 2 per cent this year.
Tourism and private consumption will be key growth drivers, the World Bank said, with tourist arrivals projected to reach 90 per cent of pre-pandemic levels this year.
The government is aiming for a record of 40 million foreign visitors this year after welcoming 28 million visitors in 2023.
Prime Minister Srettha Thavisin has characterised the economy as facing a “crisis” and in need of a major fiscal stimulus through his government’s delayed signature policy, a US$14 billion handout to 50 million Thais.
The ‘digital wallet’ scheme could add 1 per cent to growth but will increase public debt, Kiatipong said. REUTERS
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