The NESDC expects a growth rate of 2.7% for this year, without factoring in the implementation of the digital wallet scheme.
The Office of the National Economic and Social Development Council (NESDC) has announced that Thailand’s economy expanded by just 1.9% in 2023.
The office also suggests that the Bank of Thailand should consider reducing its policy interest rate in order to alleviate financial pressure on households and businesses.
The Office of the National Economic and Social Development Council (NESDC) has recently announced that Thailand’s economy expanded by 1.9% in 2023. While this growth is positive, it was slower than expected due to various factors .
- Thai Economic Performance in Q4 of 2023: The Thai economy expanded by 1.7% year-on-year, driven by private consumption, export of services, and private investment. However, public spending and export of goods contracted. The headline inflation was 0.5% and the current account surplus was 3.5 billion US dollars.
- Thai Economic Outlook for 2023: The Thai economy grew by 1.9% in 2023, decelerating from 2.5% in 2022. The main growth drivers were private consumption, tourism, and agriculture. The main drags were manufacturing, public investment, and export of goods. The headline inflation was 1.2% and the current account surplus was 1.3% of GDP.
- Thai Economic Outlook for 2024: The Thai economy is projected to grow in the range of 2.2 – 3.2% in 2024, supported by the recovery of export of goods, private consumption, private investment, and tourism. The headline inflation is estimated to be in the range of 0.9 – 1.9% and the current account surplus is projected to be 1.4% of GDP.
Interest Rate Considerations
Given the weaker-than-expected growth, there is now a case for an interest rate cut by the Bank of Thailand during its next policy review. The current key rate stands at 2.50%, the highest in over a decade. Two dissenters within the bank favored a rate reduction.
Outlook for 2024
The NESDC projects that growth in 2024 will be between 2.2% and 3.2%, which is lower than their earlier projection of 2.7%.
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