World Bank raises recovery prospects for Thai economy

The World Bank’s Thailand Economic Monitor for June 2023 has indicated that an acceleration of the Thai economic recovery is anticipated.

The Bank’s forecast for Thai GDP growth in 2023 has also been revised upwards, to 3.9%, due to stronger-than-expected foreign demand.

Government spokesman Anucha Burapachaisri has made it known that in recognition of this fact, Prime Minister General Prayut Chan-o-cha has expressed his gratitude to all relevant parties working to ensure the economic recovery of the nation. He added that the prime minister was confident in his administration’s stimulus policies, based on continuous assessments of economic conditions. The policies were intended to help strengthen the Thai economy, and revised World Bank projections reflected the results.

The World Bank noted that Thailand’s economic growth picked up to 4.5% in the first quarter of 2023, thanks to strong domestic demand and revenue from tourism. According to the World Bank report, the current account balance is expected to reverse the deficit of the last two years and return to positive in 2023, with 2.5% of GDP, due to the improvement in trade in goods and services .

Inauguration of the “Lanna Expo 2023” in Thailand, with the participation of Peru

On the other hand, labor market conditions are improving as the recovery of the sectors related to tourism, commerce and hospitality continues. The report also indicated that the unemployment rate stood at 1.1%, below the 1.5% of the same quarter of the previous year.

The Bank’s forecast for Thai GDP growth in 2023 has also been revised upwards, to 3.9%, due to stronger-than-expected foreign demand.

According to the Ministry of Tourism and Sports, more than 12.4 million foreign visitors have visited Thailand since the beginning of the year, generating some 500 billion baht in revenue for the kingdom.

Spokesman Anucha said the World Bank report forecast the Thai economy to grow 3.6% and 3.4% in 2024 and 2025 respectively. However, he warned of the risks that must be avoided, such as weaker-than-expected global economic growth and other challenges such as climate change. He also mentioned that Thailand frequently suffers from droughts and floods, although he acknowledged that progress has been made to better deal with these problems.