# UTTC lowers Thailand’s 2024 growth forecast to 2.6%

- Link: https://www.thailand-business-news.com/economics/132534-uttc-lowers-thailands-2024-growth-forecast-to-2-6
- Published: 2024-03-22T15:36:30+07:00
- Author: Boris Sullivan

The economic growth forecast for Thailand in 2024 has been reduced to 2.6% from 
the earlier projection of 3.2% due to factors such as fragile economic recovery,
slowdown in private investment, weak consumer purchasing power, and delayed budget
disbursement.

## Key Takeaways

 * Thailand’s economic growth forecast for 2024 has been revised down to 2.6% due
   to factors such as a fragile economic recovery, slow private investment, and 
   weak consumer purchasing power.
 * The first quarter is projected to see only 2% economic expansion, with growth
   expected to pick up to 2.5% in the second quarter, driven by national budget 
   disbursement, tourism, and exports.
 * Despite the possibility of an overall 3% growth for the year, concerns remain
   about low consumer confidence, high household debt, and the impact of non-performing
   loans on lending.

The economic growth forecast for Thailand in 2024 has been revised downward to 2.6%
from the previously projected 3.2%. This adjustment is attributed to several factors
including a fragile economic recovery, a slowdown in private investment, weakened
consumer purchasing power, and delayed budget disbursement. These combined issues
have led to a less optimistic outlook for Thailand’s economic performance in the
coming year.

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[Thailand’s GDP growth](https://infogram.com/thailands_gdp_growth)
[Infogram](https://infogram.com)

The first quarter is projected to see a 2% expansion, with only tourism and exports
showing continuous growth. The second quarter is expected to improve to 2.5%, mainly
due to budget disbursement, tourism, and exports. Consumer confidence remains low
due to the lingering impact of the COVID pandemic and higher interest rates.

The third quarter is anticipated to show a 3.1% growth, with expected declines in
lending rates. However, the 4th quarter growth is forecast at 2.8% due to high household
debt leading to an increase in non-performing loans. If the national budget disbursement
accelerates and the “digital wallet” scheme is approved quickly, there is a possibility
of the year’s growth increasing to 3%.

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