Thailand’s economy relies heavily on tourism, but GDP growth forecasts have been lowered due to challenges in manufacturing and debt levels, while retail debtor interest remains low amid ongoing economic stimulus measures.
Thailand’s Economic Outlook
Thailand’s economy is primarily bolstered by the tourism sector, although challenges persist. The Fiscal Policy Office (FPO) has revised its 2024 GDP growth forecast down to 2.5%, reflecting weaker performance, particularly in manufacturing. Despite a boost from the ₹10,000 cash handout program, indicators like private consumption show stagnation, emphasizing concerns over household debt and spending power.
Tourism’s Continued Importance
Krungsri Research anticipates ongoing support for Thailand’s economy from tourism in early 2025, despite safety concerns affecting Chinese tourist numbers. In January, 3.02 million foreign tourists visited, generating significant revenue, primarily from China. Even with planned economic stimulus measures, their impact may be limited due to previous cash handouts showing scant effects on consumer spending.
Global Trade Policy Challenges
As China grapples with economic challenges, trade policy uncertainty poses a risk globally, impacting nations like the U.S. and European countries. Fluctuating tariffs complicate the decision-making landscape for businesses and threaten economic stability. Addressing these uncertainties is vital for encouraging growth and cooperation across global markets.
Source : Trade Policy Uncertainty Increases Economic Pressure in the US, Europe, China, and Globally
