The Ministry of Finance in Thailand has lowered its economic growth forecast for 2023 from 3.5% to 2.7% due to weaker exports and lower government consumption.
- The Ministry of Finance has revised Thailand’s economic growth forecast for 2023 downwards to 2.7% due to weaker exports and lower government consumption.
- The Thai economy continues to rely on tourism and domestic consumption as exports remain weak.
- The ministry predicts a contraction of 1.8% in exports this year, but expects a rebound with a 4.4% growth in exports in 2024.
However, they predict a higher growth rate of 3.2% for 2024, which does not yet account for the impact of the government’s planned ‘digital wallet’ handout scheme.
The Thai economy is currently reliant on tourism and domestic consumption as exports remain weak. Exports are projected to contract 1.8% this year but rise by 4.4% in 2024.
The ministry also revised down the number of expected 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.