BANGKOK (Reuters) – Thailand’s economy is expected to grow 2.7% in 2024, the Finance Ministry said Friday, up from a previous forecast of 2.4% due to higher foreign tourist arrivals and exports.
“We see positive signs from exports due to improving economic growth from trading partners,” Deputy Finance Minister Paopoom Rojanasakul said, adding the growth could hit 3% this year on due to policies still to be implemented.
“It’s a good number, but we have to do better.”The growth forecast did not factor in the 450 billion baht ($12.5 billion) cash handout scheme to be rolled out in the fourth quarter, Paopoom said, adding that would contribute 1.2 to 1.8 percentage points to growth.
Exports were seen rising 2.7% in 2024, stronger than an earlier forecast of 2.4%.
Tourism is a key driver of Southeast Asia’s second-largest economy and the ministry now expects 36 million foreign arrivals, who are expected to stay longer and spend an estimated 1.69 trillion baht more due to relaxed visa requirements, said Paopoom.
The previous forecast expected 35.7 million foreign arrivals with projected spending of 1.59 trillion baht.
The Thai economy expanded 1.9% last year, slower than expected and less than 2.5% growth in 2022.
The ministry saw the baht trading at an average of 36.2 baht per dollar, slightly weaker than the 36 baht seen in April, due to capital outflows in the first half of the year.
($1 = 36.1300 baht)
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