Thailand’s economy is on the path to recovery in 2023, and China’s role as a significant driver is evident, according to a Thai economist.
Kirida Bhaopichitr, Director for the Economic Intelligence Service of the Thailand Development Research Institute (TDRI), was recently interviewed by China’s official Xinhua news agency. She said China’s economic growth and its deepening cooperation with Thailand in industries are contributing to maintaining Thailand’s recovery momentum, while helping mitigate risks posed by factors such as slowing global economic growth.
Kirida noted that factors such as slowing global economic growth, increased uncertainty in the U.S. economy, geopolitical risks, fluctuation of the Thai baht exchange rate, and natural disasters all exert pressure on Thailand’s exports. Thai exports are expected to continue contracting in the foreseeable future.
Kirida emphasized China’s importance as a significant trading partner, a major source of foreign direct investment, and a significant contributor to tourist arrivals for both Thailand and the Association of Southeast Asian Nations (ASEAN). She added that China’s economic growth will significantly contribute to Thailand’s economic expansion.
According to the Thailand Board of Investment (BOI), investment promotion applications in the first half of 2023 have seen a remarkable 70% increase year-on-year, with China being the largest source of FDI applications with total investment pledges of 61.5 billion baht for 132 projects, mostly in electronics parts manufacturing.
Kirida said Chinese investments drive the growth of industries such as electrical vehicles and parts, electronics and information technology (IT) in Thailand.
The economist added that private consumption has exhibited consistent growth, supported by a recovering labor market, leading to improved consumer confidence across all occupational groups. (NNT)
