World Bank cuts Thai growth outlook to 2.5% this year, 3.2% next year
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
THAILAND’S economic growth is expected at 2.5 per cent this year before accelerating to 3.2 per cent in 2024, supported by a recovery in tourism, exports and sustained private consumption, the World Bank said on Thursday (Dec 14).
The growth outlook for 2023 and 2024 was reduced from 3.4 per cent and 3.5 per cent estimated in October, respectively. South-east Asia’s second-largest economy expanded 2.6 per cent in 2022.
Growth in 2023 was dampened by a contraction in exports as well as ongoing fiscal consolidation, the World Bank said.
Tourism and private consumption will be key growth drivers while exports are expected to rebound due to favourable global trade despite the slowing Chinese economy, the bank said in its Thailand Economic Monitor.
Tourism is projected to return to pre-pandemic levels in mid-2025, set back by the Chinese slowdown, while economic growth is forecast at 3.1 per cent in 2025, the World Bank said.
Thailand’s planned digital wallet program, potentially amounting to 2.7 per cent of gross domestic product (GDP), could boost near-term growth further by 0.5 to 1 percentage point over the two-year period in 2024 and 2025 if implemented, the bank said.
SEE ALSO
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
As a result, the fiscal deficit may increase to 4 per cent to 5 per cent of GDP, while public debt may reach 65 per cent to 66 per cent of GDP, it said.
Heightened geopolitical conflict and high oil prices, which could lead to another inflationary surge in Thailand due to its high dependency on energy imports, pose downside risks to the outlook, the World Bank said. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
TRENDING NOW
Vietnam formalises new state leadership, redefining ‘four pillars’ power balance
‘Largest Singapore commercial S-Reit proxy’: analysts say buy CICT shares after Paragon acquisition
From 1MDB to ‘corporate mafia’: Is Malaysia facing a new governance test?
Why where you park your joint venture matters: Lessons from a US$689 million shareholder dispute
