The World Bank’s Thailand Economic Monitor for June 2023 has revealed that the country’s economic recovery is expected to gain momentum. The bank has revised its forecast for Thai GDP growth in 2023, raising it to 3.9% due to stronger external demand than anticipated.
Government Spokesperson Anucha Burapachaisri has conveyed Prime Minister Gen Prayut Chan-o-cha’s appreciation for the collective efforts of all relevant parties in driving the nation’s economic recovery. The prime minister expressed confidence in his administration’s stimulus policies, which were formulated through continuous assessments of economic conditions. The World Bank’s revised projections are seen as a reflection of the positive outcomes of these policies.
The World Bank’s report highlighted Thailand’s economic growth rebound of 4.5% in the first quarter of 2023, driven by robust domestic demand and tourism revenue. It also expects the current account balance to shift from a deficit to a positive territory in 2023, accounting for 2.5% of GDP, thanks to improved trade in goods and services.
The labor market conditions are also showing signs of improvement as sectors related to tourism, trade, and hospitality continue to recover. The unemployment rate decreased from 1.5% in the same quarter of the previous year to 1.1%.
Thailand has attracted more than 12.4 million foreign visitors since the beginning of the year, generating approximately 500 billion baht in revenue for the country, according to the Ministry of Tourism and Sports.
Spokesperson Anucha highlighted that the World Bank’s report projects further expansion of the Thai economy, with growth rates of 3.6% and 3.4% expected in 2024 and 2025, respectively. However, the report also cautioned about potential risks, including weaker-than-expected global economic growth and challenges such as climate change. It acknowledged that Thailand faces recurring issues like droughts and floods but noted the progress made in enhancing coping mechanisms for these challenges.