The Grant Thornton International Business Report (IBR) for H1 2023 shows positive economic conditions and outlook for Thailand, with improvements in business health and optimism for the private sector. Inflation concerns are receding, and there is expected post-pandemic growth in various industries.
Thailand Shows Positive Economic Outlook in H1 2023
The Grant Thornton International Business Report (IBR) for H1 2023 indicates a significant improvement in economic conditions and positive sentiment for the private sector globally, with Thailand in particular showing exceptional economic health. The report, which surveys mid-market businesses, highlights the expected trends and business conditions for the next 12 months. The new IBR for H1 2023 is particularly noteworthy as it signals post-pandemic growth, which has been eagerly awaited after years of delays due to geopolitical issues and new waves of infections.
Positive Signs for Global and Asia-Pacific Mid-Market Businesses
Globally, mid-market business health scored 3.1%, a significant increase from negative values just six months ago. In the Asia-Pacific region, mid-market business health improved to 0.5%, up from -2.8% in the previous report. Notably, both ASEAN and Thailand exhibited even higher rates of improvement and overall totals. ASEAN reported a business health score of 9.9%, while Thailand scored an impressive 14.3%. Thailand’s score represents a significant increase of 5.5 percentage points, indicating improved investment climate, better economic conditions, and increased business optimism.
Trends and Challenges for Thai Businesses
While business health has improved for Thai mid-market businesses, the percentage of businesses expecting an increase in exports over the next 12 months has been on a consistent downward trend. However, revenue scores, profitability expectations, economic optimism, employment scores, and investment in staff skills all showed positive trends. The easing of inflation likely contributed to improved perception of demand constraints. Overall, Thailand’s outlook remains positive despite challenges in the export sector.