Thailand’s GDP growth forecast for this year has been revised down to 2.5% from the earlier projection of 3%.
Key Takeaways
- Thailand’s GDP growth for this year is projected to be 2.5%, down from the earlier projection of 3%, primarily due to a contraction in exports and reduced government sector consumption.
- The third quarter of this year saw a significant decrease in exports of industrial products by 4% and a 4.9% decline in government sector consumption.
- To achieve the government’s target of 5% GDP growth next year, Thailand needs to focus on boosting exports and investments, which are the main drivers of economic growth
The third quarter saw a growth rate of only 1.5% due to a contraction in exports and a decline in government sector consumption. For the first nine months of the year, growth was recorded at 1.9%, similar to the previous year.
Public sector investments are expected to decrease by 1.8% due to delays in budget disbursement. Next year, Thailand’s growth is projected to range between 1.7% and 3.7%, with the potential for further growth if exports and investments are boosted.
The government plans to boost annual growth to 5% by implementing a digital wallet program that would provide a one-time cash handout to millions of Thais.
The government hopes that this cash handout will boost the economy by over 2 trillion Thai baht. However, there are concerns about whether this scheme can address the country’s socioeconomic issues, such as poverty, income inequality, and a deteriorating education system.
