28-6-2023 (BANGKOK) Thailand’s economy is set to experience a stronger growth trajectory than previously anticipated, with the World Bank projecting a 3.9% expansion for this year, up from the earlier forecast of 3.6%. The upward revision is attributed to robust private consumption growth and a notable recovery in the tourism sector, according to the World Bank’s announcement on Wednesday.
As the second-largest economy in Southeast Asia, Thailand registered a 2.6% growth in 2022 as the tourism industry began rebounding from the extensive travel restrictions imposed during the pandemic.
The World Bank expects the growth momentum to continue with a 3.6% expansion in 2024, followed by a slightly moderated rate of 3.4% in 2025. The main drivers of growth will remain private consumption and the tourism sector, even as external demand weakens, as stated in the bank’s official statement.
The return of tourists, particularly from China, has significantly bolstered Thailand’s tourism prospects. The projected arrivals for this year have been revised upwards, with an estimated 28.5 million visitors expected, representing approximately 84% of the pre-pandemic levels recorded in 2019, according to the World Bank report.
Nevertheless, potential downside risks still loom over Thailand’s economic outlook. The World Bank highlights that weaker-than-expected global growth and political uncertainty pose significant challenges in the short term.
Thailand is currently in the process of forming a new government following the elections held in May. However, doubts persist regarding whether the leader of the winning Move Forward party commands sufficient support to secure the position of prime minister.
