Thailand
Thailand: Agencies predict economic uptick
Prime Minister Prayut Chan-o-cha is feeling upbeat regarding Thailand’s economic recovery, citing the forecasts of several reputable economic agencies including the Asian Development Bank (ADB) and Japan Center for Economic Research (JCER) that anticipate a rebound in 2023 and 2024.
According to government spokesman Anucha Burapachaisri, Gen Prayut credits the agencies for the evaluation and Thais for collaborating to restore the country’s economy.
“Many economic agencies have evaluated Thailand’s economy and agree it is expanding positively. Amid the global economic slowdown, it reflects the strength and stability of Thailand’s economic foundation, which is an important factor in building confidence among foreign investors,” said Mr Anucha.
He cited the latest Asian Development Outlook report that projected Thai economic growth of 3.3% this year and 3.7% in 2024 as the recovery in tourism and private consumption help offset a slowdown in exports.
The ADB said the easing of travel restrictions and reopening of borders would drive the economy to grow faster this year and next, following an expansion of 2.6% and 1.5% in 2022 and 2021, respectively.
The bank projected the growth of Thailand’s service sector by 9.4% and 9.7% this year and next, mainly attributed to the return of tourists from China, with the number of foreign arrivals estimated at 28 million this year and 35 million in 2024, nearing the tally of 39.8 million recorded in 2019.
Exports of goods and services in 2023 and 2024 are expected to moderate, growing 6.6% and 6.3%, respectively, down from 6.8% last year, attributed to a global economic slowdown this year and the baht’s appreciation.
Merchandise exports are projected to recover next year as the global economy improves, noted the report.
Private investment is expected to continue growing this year and next by 2.5% and 3.5%, respectively, according to the ADB.
A quarterly survey compiled by the JCER and Nikkei, released earlier this month, revealed economists predict stronger growth than expected for Thailand and Malaysia this year thanks to the tourism recovery and easing of China’s strict Covid-19 policies.
The Japanese think tank and Nikkei conducted the latest Consensus Survey on Asian Economies from March 3-24, receiving 42 answers from economists and analysts in the five major economies of Asean — Indonesia, Malaysia, the Philippines, Singapore and Thailand — as well as India.
The economists upgraded their growth projection for Thailand to 3.7% in 2023 from 3.5%, with growth in 2024 also estimated at 3.7% because of a strong rebound in the tourism sector and the easing of China’s Covid-19 control measures.
Source: https://www.bangkokpost.com/business/2548056/agencies-predict-economic-uptick