Thai Economy to Recover in 2024 Driven by Tourism, Exports Recovery
December 14, 2023---Carbon pricing critical for achieving climate objectives
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Growth in 2023 was dampened by a contraction in goods exports as well as ongoing fiscal consolidation, according to the report. The economy is projected to expand at a more moderate 3.1% in 2025.
Headline inflation is projected to slow to 1.1% in 2024 due to low energy prices. However, food prices are expected to increase. Thailand's planned digital wallet program, potentially amounting to 2.7 percent of GDP, could boost near-term growth further by 0.5 to 1 percentage point over the two-year period in 2024 and 2025 if implemented. As a result, the fiscal deficit may increase to 4% to 5% of GDP, while public debt may reach 65% to 66% of GDP. |