Thailand’s economy is expected to grow 2.2-2.7% this year, down from a previous forecast of 2.8-3.3% due to a slow export recovery, the Joint Standing Committee on Commerce, Industry and Banking estimates.
Exports, a key driver of the Thai economy, are now projected to increase 0.5-1.5% this year compared with a rise of 2-3% seen earlier. In the first three months of 2024, exports fell 0.2% year-on-year, according to the Commerce Ministry.
Southeast Asia’s second-largest economy grew 1.9% last year, lower than the 2.5% growth in 2022. This means that Thailand is lagging behind its regional peers as it confronts high household debt and borrowing costs.
Last week, the finance ministry reduced its 2024 economic growth forecast to 2.4% from 2.8% but said growth could still reach 3.3%, providing that the government’s 500 billion baht ($13.5 billion) household stimulus plan will be launched in the fourth quarter.
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