Thai finance ministry cuts 2023 growth outlook to 2.7% as exports decline

THAILAND’S finance ministry on Friday (Oct 27) cut its 2023 economic growth forecast to 2.7 per cent from 3.5 per cent seen earlier, due to weaker exports and lower government consumption.

But the ministry sees higher growth of 3.2 per cent in 2024, it said, adding the projection has yet to price in the effect of the government’s planned ‘digital wallet’ handout scheme. Last year’s growth was 2.6 per cent.

As exports are weak, South-east Asian’s second-largest economy continues to be supported by tourism and domestic consumption, the ministry said.

Exports, a key driver of the Thai economy, are forecast to contract 1.8 per cent this year, compared with a previous forecast for a 0.8 per cent drop, but should rise 4.4 per cent next year, the ministry said.

The ministry forecast foreign tourists at 27.7 million this year, compared with an earlier estimate of 29.5 million. It predicts 34.5 million foreign visitors in 2024.

Pre-pandemic 2019 saw a record of nearly 40 million foreign tourists, who spent about 1.91 trillion baht, or more than 11 per cent of gross domestic product. REUTERS