The Ministry of Finance has lowered Thai 2023 economic growth outlook to 3.5% from 3.6% projected earlier.
The ministry’s spokesman Pornchai Thiraveja, who is also head of the ministry’s fiscal policy office said the projected economic growth is driven by the continuous recovery of the tourism sector, domestic demand and decreasing inflation.
Tourist arrivals from Asian countries are expected to increase. It is projected that the total number of foreign tourists will be 29.5 million this year, contributing to a 164.2% annual increase in revenue from tourism and related service businesses.
Additionally, revenue from international tourism is estimated to reach 1.25 trillion baht, marking a 243.8% increase from that of last year.
Regarding exports, it is expected that the value of exports in U.S. dollars will slightly contract by 0.8%.
The ministry also predicts a small impact from a delayed budget for the fiscal 2024 as Thailand has yet to form a new government after the May 14 election.
The spokesperson for the Ministry of Finance emphasized that the key factors to closely monitor for their potential impact on the Thai economy include the continuity of the tourism sector, global oil price trends affecting inflation domestically, geopolitical conflicts in various regions, such as the Russia-Ukraine conflict and the strategic competition between China and the United States, which could affect global supply chains and international trade. (TNA)
