Economic Overview
The Monetary Policy Committee (MPC) of the Bank of Thailand has forecasted a steady expansion for the Thai economy, projecting growth rates of 2.6% and 3.0% for the years 2024 and 2025, respectively. This optimistic outlook stems from the robust performance of domestic demand in the first quarter, along with sustained growth within the flourishing tourism sector. Moreover, government disbursements will accelerate in the second quarter. Despite these positive indicators, headline inflation is anticipated to remain stable, holding at 0.6% and 1.3% for the years 2024 and 2025, respectively, while core inflation is expected to register at 0.5% and 0.9% for the corresponding periods.
Projection for Growth and Inflation
| Percentage Per Year | 2023* | 2024 | 2025 |
|---|---|---|---|
| GDP Growth | 1.9 | 2.6 | 3.0 |
| Headline Inflation | 1.2 | 0.6 | 1.3 |
| Core Inflation | 1.3 | 0.5 | 0.9 |
More information from the June 2024 Monetary Policy Report can be found at https://www.bot.or.th/th/our-roles/monetary-policy/mpc-meeting.html
Source : Bank of Thailand
Monthly Economic Report
The Thai economy is expected to grow by 2.4 percent in 2024, driven by continuous expansion in the tourism sector and supportive fiscal policies. Anticipated international tourist arrivals of 35.7 million, marking a 26.7 percent increase, are poised to benefit tourism and related industries. This optimistic forecast is likely to boost employment, household income, and business confidence. Projections indicate a 3.7 percent rise in private investment and a 3.5 percent increase in private consumption.
Thailand’s Economic Projections for 2023 & 2024
| Growth Rate (% YOY) | 2022 | 2023 | 2024f |
|---|---|---|---|
| GDP | 2.6 | 1.9 | 2.4 |
| Real Private Consumption | 6.3 | 7.1 | 3.5 |
| Real Private Investment | 5.1 | 3.2 | 3.7 |
Additional detail from the latest month’s Fiscal Policy Report can be found by visiting : Fiscal Policy Office
Source: Fiscal Policy Office
Last updated: June 12th, 2024
