The Ministry of Finance in Thailand has revised its economic growth forecast for 2023 to 2.7%, down from 3.5%, due to weaker exports and lower government consumption.
Key Takeaways
- The Ministry of Finance has lowered Thailand’s economic growth forecast for 2023 to 2.7% due to weaker exports and lower government consumption.
- The Thai economy continues to depend on tourism and domestic consumption as exports remain weak.
- The ministry predicts a 1.8% contraction in exports this year, but expects a rebound with a 4.4% growth in exports in 2024.
However, they anticipate a higher growth rate of 3.2% for 2024, which does not yet include the impact of the government’s planned ‘digital wallet’ handout scheme.
The Thai economy currently relies on tourism and domestic consumption as exports remain weak. Exports are projected to contract by 1.8% this year but are expected to rise by 4.4% in 2024.
The ministry also lowered the expected number of foreign tourists for this year from 29.5 million to 27.7 million, with a prediction of 34.5 million in 2024. In 2019, Thailand welcomed nearly 40 million foreign tourists, who contributed over 11% of the country’s GDP.