The World Bank cuts Thailand's 2024 growth outlook to 2.8%. (Photo: VNA) Hanoi (VNA) – Thailand's economic growth is projected at 2.8% in 2024, down from 3.2% expected in December 2024 due to dimmer export and public investment prospects, the World Bank (WB) reported on April 1.
According to the bank's East Asia and Pacific April 2024 Economic Update, the country's growth was hampered as the manufacturing sector suffered from weak external demand and public investment slowed owing to a delayed fiscal budget.
The Thai economy grew 1.9% in 2023 and contracted 0.6% in the final quarter of 2023 compared to the third quarter.
The bank acknowledged that tourism and private consumption will be key drivers to the Southeast Asia's second-largest economy. Meanwhile, exports are expected to grow by 5% in 2024 thanks to favourable global trade.
It also said that inbound tourists are anticipated to reach 90% of pre-pandemic levels this year, with Chinese visitors, the largest source of tourists for Thailand, expected to reach 62% of pre-pandemic levels. The nation's tourism recovery is projected to return to pre-pandemic levels by mid-2025.
The report cited that there are upside risks to domestic demand if the government's digital wallet handout scheme is implemented. However, there are still concerns over increased geopolitical tensions and high oil prices, which could cause another inflationary spike given the kingdom's reliance on energy imports./.
