Thailand Economic Observatory World Bank Thailand has indicated that an acceleration of economic recovery is expected by June 2023. The bank’s forecast for Thailand GDP growth in 2023 has also been revised up to 3.9% due to stronger-than-expected external demand.
In recognition of this fact, Prime Minister General Prayuth Chan-o-cha expressed his gratitude to all stakeholders working to revive the country’s economy, said government spokesperson Anucha Purapachaisri. He added that the Prime Minister is confident of his administration’s stimulus policies, based on ongoing assessments of economic conditions. The policies were intended to help strengthen the Thai economy, and revised World Bank forecasts reflected the results.
Thai Prime Minister expresses optimism as World Bank raises economic outlook
The World Bank noted that Thailand’s economic growth rose to 4.5% in the first quarter of 2023, thanks to strong domestic demand and revenue from tourism. According to a World Bank report, the current account balance is expected to reverse the deficit of the last two years and turn positive in 2023, with 2.5% of GDP, thanks to an improvement in trade in goods and services.
On the other hand, labor market conditions are improving as the tourism, trade and hospitality-related sectors continue to recover. The report also indicated that the unemployment rate was 1.1%, down from 1.5% in the same quarter a year earlier.
The World Bank has projected Thailand’s economic growth to 4.5% in the first quarter of 2023.
According to the Ministry of Tourism and Sports, more than 12.4 million foreign visitors have visited Thailand since the beginning of the year, bringing in about 500 billion baht in revenue for the kingdom.
Spokesperson Anucha said a World Bank report predicted the Thai economy would grow by 3.6% and 3.4% in 2024 and 2025, respectively. However, he cautioned that risks such as weaker-than-expected growth in the global economy and other challenges such as climate change must be overcome. Noting that Thailand suffers from frequent droughts and floods, he acknowledged that progress has been made to better deal with these issues.
