(CTN News) – Stronger export performance and stronger tourism revenue are primary drivers of economic growth, according to the Thailand Finance Ministry.
On Friday, Deputy Finance Minister Paopoom Rojanasakul revealed that the ministry had raised its economic growth forecast for this year to 2.7%, up from 2.4% previously.
This adjustment is prompted by three major factors:
Stronger export growth: Exports are doing better than predicted, thanks to a forecast 3.2% rise in key trading partners’ economies.
Higher tourism revenue: International tourist arrivals and expenditure are exceeding forecasts as a result of effective government steps to revitalise the industry.
Increased government expenditure: The government is expected to spend more efficiently, with a steady increase in spending near the end of the fiscal year.
The services balance is predicted to continue positive due to increased tourism, resulting in a projected current account surplus of US$11 billion, or 2.4% of GDP.
However, these projections exclude the economic impact of the government’s 10,000-baht digital wallet initiative, which is expected to raise growth by 1.2-1.8%.
“The impact will depend on the source of funding, project conditions, participant numbers and spending behaviour,” Paopoom told Reuters.
External Risks Influencing Thailand’s Economy
Global geopolitical issues, including tensions between Israel and Iran, strategic competition between the United States and China, and disputes in the South China Sea, might all have a negative impact on Thailand’s economy. Additionally, global financial market instability and domestic household debt difficulties may have an impact on future expenditure.
Government spending: Increased investment and expenditures across all agencies.
Tourism revenue: Increased foreign visitor arrivals, particularly during peak season.
Investment projects: Accelerating authorised projects and investment promotions in accordance with the government’s “Ignite Thailand” goal to transform Thailand into a worldwide investment destination.
The Finance Ministry hosted the “Ignite Finance: Thailand’s Vision for a Global Financial Hub” event, which aimed to boost Thailand’s global financial competitiveness and assure long-term economic growth, establishing the country as a regional leader.
Source: Nation Thailand
