The World Bank’s Thailand Economic Monitor for June 2023 has indicated the Thai economic recovery is projected to accelerate. The bank’s forecast for Thai GDP growth in 2023 has also been revised up to 3.9% due to stronger than expected external demand.
Government Spokesperson Anucha Burapachaisri made known that in acknowledgment of this development, Prime Minister Gen Prayut Chan-o-cha has expressed his appreciation for all relevant parties working to ensure the nation’s economic recovery. He added that the premier was confident in his administration’s stimulus policies, which were based on continuous assessments of economic conditions. The policies were intended to help strengthen the Thai economy, with the World Bank’s revised projections reflecting the results.
The World Bank noted that Thailand’s economic growth rebounded by 4.5% in the first quarter of 2023 amid high domestic demand and tourism revenue. The World Bank report said the current account balance is expected to reverse from the deficit of the past two years and return to positive territory in 2023 at 2.5% of GDP, due to improving trade in both goods and services.
Meanwhile, it said labor market conditions are showing improvement as recovery continues across sectors related to tourism, trade and hospitality. The report further noted that the unemployment rate stood at 1.1%, down from 1.5% in the same quarter of last year.
According to the Ministry of Tourism and Sports, more than 12.4 million foreign visitors have visited Thailand since the beginning of the year, generating about 500 billion baht in revenue for the kingdom.
Spokesperson Anucha said the World Bank report projected that the Thai economy will expand by 3.6% and 3.4% in 2024 and 2025, respectively. It nevertheless warned of risks that must be navigated, such as weaker-than-expected growth of the global economy and various other challenges such as climate change. It also mentioned that Thailand frequently suffers from droughts and floods, although it acknowledged that progress has been made to better cope with these problems. (NNT)
