Thailand’s economy projected for strong recovery and growth in 2024
Thailand’s economy is in a promising state of recovery, as projections indicate a boost in both domestic demand and tourist arrivals. With the resurgence of most industries and the emergence of tech-driven sectors like electric vehicles, there is a wave of optimism that the country’s economic growth will significantly strengthen in 2024. Six industries are predicted to experience rapid growth this year, reflecting Thailand’s advancement in trade, technology readiness, and social well-being.
One of the top 10 sunrise businesses for 2024, as ranked by the University of the Thai Chamber of Commerce (UTCC), is e-commerce. Thailand’s online retail sector is projected to reach nearly 700 billion baht (US$20 billion) in 2024, an increase from an estimated 634 billion in 2023. E-marketplace giants like Lazada and Shopee are expected to shift their focus from subsidies and discount campaigns to profitability and sustainability, having posted significant losses over the past decade.
Moreover, 2024 could be a prosperous year for cryptocurrencies, following substantial price surges in 2023 and favourable market conditions. Bitcoin, the most popular cryptocurrency, experienced a healthy recovery in 2023, providing the highest return among all investment asset classes. Some analysts predict the price could rise as high as US$160,000 (5.5 million Thai baht) this year, supported by the US Nasdaq exchange accepting BlackRock’s spot Bitcoin exchange-traded funds (ETFs), reported Bangkok Post.
On the property front, well-being and sustainable lifestyles are trending for 2024. Homebuyers are increasingly seeking spaces for relaxation and remote work, with an emphasis on energy conservation, green initiatives, and carbon-free construction. Developers are urged to redesign or re-allocate space to serve more than its primary function, catering to the changing needs of homebuyers.
Government efforts regarding renewable energy should continue to make significant progress in 2024, with the level of growth largely dependent on state support. The implementation of the utility green tariff in January is anticipated to be welcomed by foreign investors.
The rapid growth of the electric vehicle market is fuelling related businesses both within and outside of the energy industry. PTT Oil and Retail Business Plc (OR) is planning to transform its PTT filling stations into non-petrol stations, providing a battery charging service for electric vehicle drivers. The first non-oil station is expected to be constructed in the second half of 2024.
Lastly, the sporting goods industry continues to thrive despite projections for weak domestic spending. While the general outlook for the retail market remains pessimistic, the sporting goods sector exhibits strong potential for growth in 2024. This is largely attributed to Thai consumers focusing more on health and well-being, which is expected to drive demand for sporting goods.
