Thailand’s economy to grow 2.7% this year

Thailand’s economy is projected to grow 2.7% this year, an increase from the previous forecast of 2.4%, driven by higher foreign tourist arrivals and stronger exports, according to the Ministry of Finance.

Deputy Finance Minister Paopoom Rojanasakul highlighted the positive outlook, attributing it to improving economic conditions among trading partners. He noted that growth could potentially reach 3% this year, contingent on the implementation of forthcoming policies.

“We see positive signs from exports due to improving economic growth from trading partners, It’s a good number, but we have to do better.”

The growth forecast does not include the impact of a 450-billion-baht (US$12.5 billion) cash handout scheme set to be introduced in the fourth quarter. Paopoom mentioned that this initiative could contribute an additional 1.2 to 1.8 percentage points to the growth rate.

Exports are anticipated to rise by 2.7% this year, surpassing the earlier forecast of 2.4%.

Tourism remains a crucial component of Thailand’s economy, the second-largest in Southeast Asia. The ministry now expects 36 million foreign arrivals this year, who are likely to stay longer and spend an estimated 1.69 trillion baht more, thanks to relaxed visa requirements.

The previous forecast expected 35.7 million foreign arrivals with projected spending of 1.59 trillion baht, Paopoom added.

Last year, the Thai economy expanded by 1.9%, a slower pace than anticipated and below the 2.5% growth recorded in 2022.

The ministry also observed that the baht is expected to trade at an average of 36.2 baht per dollar, slightly weaker than the 36 baht seen in April, due to capital outflows in the first half of the year, reported Bangkok Post.

In related news, Tuna boom: Thai exports make a splash with a double-digit surge, Thai exports of canned tuna have experienced a notable surge, increasing by over 13% in the first five months of this year.

According to the Director-General of the Trade Policy and Strategy Office (TPSO), Poonpong Naiyanapakorn, the value of these exports reached US$979 million during this period, reflecting a 13.4% year-on-year growth.