(CTN News) – Thailand: According to the findings of the Finance Ministry, the primary drivers of economic development are improved export performance and increased income from tourism.
Paopoom Rojanasakul, the Deputy Minister of Finance, announced on Friday that the Ministry of Finance has changed its projection for economic growth for this year to 2.7%, which is an increase from the 3.0% estimate that was previously provided.
Thailand’s economic growth forecast for 2024 rises to 2.7%
This modification is a result of three primary considerations:
Stronger export growth: Exports are performing better than anticipated, underpinned by a predicted rise of 3.2% in the economies of major trade partners.
Higher tourism revenue: The successful steps taken by the government to launch the tourism industry have resulted in higher tourism earnings. This is because international visitor arrivals and expenditures are surpassing expectations.
Increased expenditures by the government: It is anticipated that the government will perform its spending more effectively, with a consistent increase in spending towards the conclusion of the fiscal year.
As a result of the growing tourist industry, it is anticipated that the services balance will continue to be positive, which will contribute to a projected current account surplus of eleven billion dollars, which is equivalent to two percent of the GDP.
On the other hand, these projections do not take into account the economic effect of the government’s 10,000-baht digital wallet initiative, which is anticipated to increase growth by 1.2-1.8%.
Paopoom said that the extent of the effect would be contingent upon the source of money, the circumstances of the initiative, the number of participants, and their spending habits.
Several challenges might hurt Thailand’s economic development. These challenges include worldwide geopolitical issues, such as tensions between Israel and Iran, strategic rivalry between the United States and China, and South China Sea disputes. In addition, the volatility of the global financial market and the predicament of family debt in the United States may potentially affect future expenditures.
Among the most important drivers for the remainder of 2024 are:
Accelerated investments and expenditures across all government agencies are included in the government’s budget.
Increased arrivals of tourists from other countries, especially during the peak season, contributed to the economy of tourism.
Investment projects: Accelerating projects that have been authorized and investment campaigns that are in line with the government’s “Ignite Thailand” programme, which aims to transform Thailand into a worldwide innovation center for investment.
The event titled “Ignite Finance: Thailand’s Vision for a Global Financial Hub” was organised by the Ministry of Finance to enhance Thailand’s global financial competitiveness and ensure sustained economic development, therefore establishing Thailand as a leader in the region.
Source: Nationthailand
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