WB lowers Thailand’s economic growth outlook in 2024

Thailand's economic growth is projected to be 2.4% in 2024, down from the 2.8% forecast in April, mainly due to weaker-than-expected exports and contracted public investment earlier this year, the World Bank said on Wednesday.

According to the bank, the country's growth will be supported by sustained private consumption as well as a recovery in tourism and merchandise exports.

Private spending and tourism will remain key drivers of Southeast Asia's second-largest economy, but their pace will slow, the WB said in a statement, adding that tourism is projected to return to pre-pandemic levels in mid-2025.

The bank also said that in 2024, tourist arrivals are expected to surge to 36.1 million, well above the 28.2 million arrivals in 2023 and nearing their pre-pandemic peak. Total arrivals are expected to reach 41.1 million next year, surpassing the pre-pandemic level, as Chinese visitors return in larger numbers.

Economic growth is expected to reach 2.8% in 2025, supported by stronger demand at home and overseas, as well as increased government spending. However, the 2025 growth outlook was reduced from the 3% forecast in April.

The Bank of Thailand had forecast economic growth of 2.6% this year and 3% for next year. It held its key interest rate steady at 2.5% last month. The next rate review is on August 21.

The government plans to launch a 500 billion THB ($13.6 billion) handout scheme in the fourth quarter to support the economy.

Deputy Finance Minister Paopoom Rojanasakul told reporters on Wednesday that the government is planning to launch additional measures this year that could spur growth up to 3% this year.