BANGKOK- Thailand’s economic growth is expected at 2.8 percent this year before accelerating to 3.0 percent 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 percent and 3.1 percent respectively, as forecast in December.
Southeast Asia’s second-largest economy expanded 1.9 percent in 2023 and unexpectedly shrank 0.6 percent in the final quarter of 2023 from the third.
Thailand’s central bank in February also lowered its 2024 growth outlook to 2.5 percent to 3.0 percent from 3.2 percent .
The cut stems from global trade slowing while the delayed budget slowed government spending, World Bank Senior Economist KiatipongAriyapruchya, told reporters in a virtual briefing.
Dimmer export and public investment prospects also attributed to new outlook, the World Bank said in statement.
The shipper’s council expects exports to grow 1 percent to 2 percent this year.
Tourism and private consumption will be key growth drivers, the World Bank said, with tourist arrivals projected to reach 90 percent 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 SretthaThavisin has characterized the economy as facing a “crisis” and in need of a major fiscal stimulus through his government’s delayed signature policy, a $14 billion handout to 50 million Thais.
The ‘digital wallet’ scheme could add 1 percent to growth but will increase public debt, Kiatipong said.
