Thai economy in 2024 is projected to grow by 3.2%

Chatrudee Theparat

Thai economy in 2024 is projected to grow by 3.2% excluding 10,000 baht digital wallet scheme

The Thai economy in 2024 is projected to expand in the range of 2.7 – 3.7 % (with the midpoint projection of 3.2 %).

Mr Danucha Pichayanan, secretary general to the National Economic and Social Development Council (NESDC) said Thai economy in 2024 is projected to grow by 3.2% showing Thai economy is continued to grow.

“The projection has yet included a 10,000-baht digital wallet scheme. Digital wallet scheme is not a key to drive the economy. Economic restructuring, boosting export and investment are keys to drive the economy.”

He said key supporting factors include the expansion of exports; the favorable growth of private consumption and investment; and the continual recovery of tourism sector.

Private consumption expenditure and private investment are expected to increase by 3.2 % and 2.8 %, respectively. Meanwhile, export value of goods in US dollar terms is anticipated to expand by 3.8 %.

Headline inflation is estimated to be in the range of 1.7 – 2.7 % and the current account is projected to record a surplus of 1.5 % of GDP.

Key growth components are private consumption expenditure is expected to increase by 3.2 %, continuing from a high growth at 7 % in 2023.

Government consumption expenditure is projected to increase by 2.2 %, compared with a 4.2-% contraction in 2023.

Total investment is expected to increase by 1.6 %, continuing from a 1.3 % in 2023. Private investment is estimated to increase by 2.8 %, accelerating from a 2 % growth in 2023.

Public investment is anticipated to decrease by 1.8 %, continuing from a 0.8-% detraction in 2023, owing to a delay in the 2024 annual budgetary process.

Export value of goods in US dollar term is anticipated to increase by 3.8 %, compared with a 2 % contraction in 2023.

The export volume in 2024 is expected to increase by 3.3 %, compared with a 3.1% decline in 2023.

The economic management for the remainder of the year 2023 and the year 2024 should be prioritized on appropriately implementing the monetary and fiscal policy to be consistent.

Preparing measures for addressing impacts from risks arising from geopolitical tensions, climate change, global economic slowdown, and global financial market fluctuations.

Fostering export sector to return to expansion by boosting exports to major markets, stimulating investments in the Eastern Economic Corridor (EEC) as well as expediting other regional Special Economic Corridors, and supporting investment in the key economic areas and key infrastructure projects.

Catalyzing the recovery in tourism and encouraging farmers to be able to produce and utilize organic and bio fertilizers as well as local raw materials; maintaining the growth momentum from public expenditure and investment

He said the Thai economy in 2023 is projected to expand by 2.5 %, continuing from a 2.6 % growth in 2022.

The Thai economy in the third quarter of 2023 expanded by 1.5 % (%YoY), compared with a growth of 1.8 % in the previous quarter. After seasonally adjusted, the economy increased by 0.8 percent from the second quarter (%QoQ sa).

In the first 9 months of 2023, the Thai economy grew by 1.9 %.