# Thailand’s GDP to grow by 2.5% in 2023, down from 3% forecast

- Link: https://www.thailand-business-news.com/economics/112813-thailands-gdp-to-grow-by-2-5-in-2023-down-from-3-forecast
- Published: 2023-11-20T20:16:20+07:00
- Author: Akanksha Singh

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.

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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 ](https://www.thailand-business-news.com/economics/112661-government-seeks-approval-for-digital-wallet-scheme-loan)
program that would provide a one-time cash handout to millions of Thais.

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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.