The World Bank’s Thailand Economic Monitor for June 2023 indicates the Thai economic recovery is projected to accelerate. The World Bank’s forecast for 2023 Thai GDP growth has also been revised upward to 3.9 percent due to stronger than expected external demand.
Government spokesman Anucha Burapachaisri made known that in acknowledgment of this development, Prime Minister Gen. Prayut Chan-o-cha expressed his thanks to the work of all relevant parties that enabled the economic recovery. He added the premier was confident in his administration’s economic stimulus policies which were the results of continuous assessments of the economic condition. The policies were meant to deliver the highest gains in the aspect of strengthening the Thai economy, and the World Bank’s revised projections reflect the successes of said policies.
The World Bank deemed Thailand’s economic growth rebounded by 4.5% in the first quarter of 2023 due to domestic demand and tourism. The World Bank report said the current account balance is expected to reverse from the deficit in the past two years and return to positive territory in 2023 at 2.5% of GDP, due to trade in both goods and services. Meanwhile, it said labor market conditions have improved due to the recovery of sectors related to tourism, trade, and hospitality. The report noted the unemployment rate stood at 1.1%, down from 1.5% in the same quarter last year.
Anucha noted that according to the Ministry of Tourism and Sports, more than 12.4 million foreign tourists have visited Thailand since the beginning of the year, generating about 500 billion baht of income for the country.
The spokesman added the World Bank report projected the Thai economy will expand by 3.6 percent and 3.4 percent in 2024 and 2025, respectively. Nonetheless, it noted there were still risks that must be navigated, such as a weaker-than-expected growth of the global economy and various other challenges such as climate change. It also mentioned Thailand frequently suffers from droughts and floods, although it noted that progress has been made to better cope with floods and droughts. (NNT)
