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Deputy Finance Minister predicts 2.8% economic growth for Thailand this year under new government


Sep 8, 2023

Thailand’s economy is expected to grow by 2.8% this year, a figure slightly lower than the Ministry’s earlier forecast of 3.5%. The growth is anticipated to be supported by public consumption and investment following the formation of a new government. While exports remain weak due to slowing global demand, public spending and investment are predicted to attract more private investment. Additionally, private consumption and tourism are continuing to grow steadily, according to Deputy Finance Minister Krisada Chinavicharana.

Prime Minister Srettha Thavisin, who also serves as the Finance Minister, aims to revive Thailand’s economy and fulfill key campaign promises. The government is set to deliver its policy statement on Monday. Furthermore, the country’s 2024 fiscal budget, which amounts to 3.35 trillion baht ($94.2 billion), will be promptly considered by the new administration. The budget plan had been put on hold temporarily.

Krisada expressed optimism that the economy will perform well in 2024, largely due to the government’s digital handout policy, valued at 560 billion baht ($15.8 billion). Importantly, he mentioned that funding for the scheme is secured without the need for a special borrowing law.

Thailand’s economy experienced a slowdown in the second quarter, with growth of 1.8% year-on-year and 0.2% quarter-on-quarter. The weakening of exports and investments offset the strength of the tourism sector. In 2022, the country’s economic growth was recorded at 2.6%.

In conclusion, the outlook for Thailand’s economy in 2023 suggests moderate growth of 2.8%, driven by public consumption and investment following the formation of a new government. Despite weak exports, private consumption and tourism continue to expand steadily. The upcoming delivery of the government’s policy statement and prompt consideration of the 2024 fiscal budget aim to revitalize the nation’s economy and fulfill campaign promises.

By Editor

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