Monday, May 20, 2024

World Bank lowers Thailand’s economic growth to 2.8%

The World Bank predicts Thailand’s economic growth at 2.8% in 2024, lower than expected, due to weak exports and delayed budget. Key growth drivers include tourism and private consumption.

Thailand’s Economic Growth Forecast

The World Bank predicts that Thailand’s economic growth in 2024 will be 2.8%, lower than previously expected, attributed to weak exports and a delayed budget. Tourism and private consumption are anticipated to be significant drivers of growth, with tourist arrivals projected to reach 90% of pre-pandemic levels. The government plans a 500 billion baht handout to 50 million Thais through a digital wallet scheme, which could potentially add 1% to economic growth while also increasing public debt.

World Bank’s Reform Priorities for Thailand

In its Systematic Country Diagnostic (SCD) Update for Thailand, the World Bank outlines five reform priorities to boost growth amid an economic downturn. These priorities include enhancing human capital, fostering innovation, promoting development in secondary cities, ensuring sustainability, and strengthening fiscal institutions. The report emphasizes the need for Thailand to improve education outcomes, enhance tech competitiveness, address climate change challenges, and promote sustainable practices.

Factors Influencing Thailand’s Economy

Apart from the primary factors affecting Thailand’s economy, several other elements play a role in shaping its economic landscape. These include global supply chain disruptions, labor shortages, political uncertainty, high debt levels, susceptibility to natural disasters, the need for digital transformation, and the challenge of income inequality. Overcoming these challenges and implementing strategic reforms will be crucial for Thailand’s transition towards economic prosperity and environmental integrity.

Source : World Bank lowers Thailand’s economic growth to 2.8%


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