BANGKOK, April 1 (Xinhua) -- Thailand's economic growth is projected at 2.8 percent in 2024, down from 3.2 percent expected in December last year due to dimmer export and public investment prospects, the World Bank said on Monday.
According to the bank's East Asia and Pacific April 2024 Economic Update, the country's growth was hampered as the manufacturing sector suffered from weak external demand and public investment slowed owing to a delayed fiscal budget.
The Thai economy grew 1.9 percent in 2023 and contracted 0.6 percent in the final quarter of last year compared to the third quarter.
Tourism and private consumption will be key drivers to the Southeast Asia's second-largest economy. Meanwhile, exports are expected to grow by 5 percent this year thanks to favorable global trade, the bank said in a statement.
Inbound tourists are anticipated to reach 90 percent of pre-pandemic levels this year, with Chinese visitors, the largest source of tourists for Thailand, expected to reach 62 percent of pre-pandemic levels. The nation's tourism recovery is projected to return to pre-pandemic levels by mid-2025, the World Bank said.
Looking ahead, there are upside risks to domestic demand if the government's digital wallet handout scheme is implemented. However, there are still concerns over increased geopolitical tensions and high oil prices, which could cause another inflationary spike given the kingdom's reliance on energy imports, the Washington-based bank said. ■
