World Bank cuts 2024 Thai GDP growth outlook to 2.4% on weaker exports
BANGKOK, July 3 (Reuters) -Thailand’s economy is expected to grow 2.4% this year, down from the 2.8% expansion projected in April, largely due to weaker-than-expected exports and public investment early in the year, the World Bank said on Wednesday.
Growth in Southeast Asia's second-largest economy will be driven by sustained consumer spending, the tourism industry's measured recovery, and a rebound in exports, the World Bank said in a statement.
Last year's growthof 1.9% lagged regional peers.
In 2024, tourist arrivals are expected to surge to 36.1 million, well above the 28.2 million arrivals in 2023 and nearing their pre-pandemic peak, the World Bank said.
Total arrivals are projected to reach 41.1 million next year, surpassing the pre-pandemic level, as Chinese visitors return in larger numbers, it said.
Economic growth is projected at 2.8% in 2025, supported by stronger demand at home and overseas, as well as increased government spending, the World Bank said. The 2025 growth outlook was reduced from the 3% forecast in April.
That compares with the Bank of Thailand's economic growth forecast of 2.6% this year and 3% next year.
The government plans to launch a 500 billion baht ($13.6 billion) handout scheme, the ruling Pheu Thai Party's key platform in the 2023 election, in the fourth quarter to support the economy. The scheme, which some experts have called fiscally irresponsible due to concerns over how it would be funded and over the impact on public debt, has already been delayed twice this year.
($1 = 36.83 baht)
Reporting by Orathai Sriring; Editing by Ed Davies
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