Thailand’s economic growth in 2024 is now projected at 2.4%, a decrease from the 2.8% estimated in April, according to the World Bank. The downgrade is attributed to weaker-than-expected exports and public investment earlier in the year.
Despite the revision, Thailand’s economy is still expected to outpace its 2023 growth of 1.9%, with a projected growth of 2.8% in 2025. The World Bank highlights private consumption and inbound tourism as key drivers of this growth. A rebound in goods exports due to favorable global trade conditions is also expected.
Tourism, a crucial sector for Thailand’s economy, is anticipated to recover to pre-pandemic levels by mid-2025, despite challenges posed by the Chinese economy’s slower recovery.
The World Bank also forecasts that Thailand’s inflation rate will remain below the Bank of Thailand’s target range of 1% to 3%, ending 2024 at 0.7%. This subdued inflation, coupled with slower economic growth, has prompted calls from Prime Minister Srettha Thavisin for the central bank to cut interest rates to stimulate the economy. However, the Bank of Thailand has decided to keep its key interest rates steady at 2.5% for now.
In its report, the World Bank also emphasized the need for Thailand to foster development in cities beyond Bangkok to ensure more balanced and inclusive economic growth.
Key Takeaways:
- Thailand’s 2024 GDP growth forecast revised to 2.4%.
- Private consumption and tourism remain key growth drivers.
- Inflation expected to remain below target in 2024.
- Calls for interest rate cuts to boost the economy.
- World Bank recommends broader urban development beyond Bangkok.
