Thai Ministry of Finance downgrades economic growth projection to 2.8% from 3.2%. Foreign tourist arrivals and exports also expected to decrease, but economy may still grow faster than last year.
Thai Ministry of Finance Revises Economic Growth Projection
The Thai Ministry of Finance has adjusted its forecast for the country’s economic growth this year to 2.8%, down from the previous estimate of 3.2%. This downgrade reflects a slower-than-expected expansion in the Thai economy, with potential implications for various sectors.
Impact on Tourism and Exports
The revision also affects foreign tourist arrivals, which are anticipated to decrease to 33.5 million in 2024, down from the earlier forecast of 34.5 million, potentially impacting the tourism sector. Additionally, exports are expected to grow by 4.2%, lower than the previous forecast of 4.4%.
Efforts to Address Economic Slowdown
Despite the downward revisions, the Thai economy is expected to grow at a faster pace than last year, driven by higher exports, services, and tourism arrivals, with prospects closely linked to China’s economic outlook. The Prime Minister and his advisors are using the lower GDP estimate to support their push for lower interest rates, citing the impact of high interest rates on the economy. The economic slowdown was primarily attributed to a contraction in manufacturing, with estimated exports also experiencing a 1.5% decline.