How does a weaker baht affect Thailand’s economy?

A weaker currency can have both positive and negative effects on a country’s economy, depending on various factors. For Thailand, a weaker baht may benefit some sectors, such as exports and tourism, but hurt others, such as manufacturing and imports.

According to some experts, a weaker baht makes Thai products more competitive in export markets, as they become cheaper for foreign buyers. Thailand’s exports account for about 67 percent of its gross domestic product (GDP), so a boost in exports can help the economy grow.

Thailand more attractive to foreign tourists

A weaker baht also makes Thailand more attractive to foreign tourists, who can spend more on local goods and services. Tourism plays a significant role in Thailand’s economy, contributing approximately 12 percent to the country’s GDP. Therefore, an increase in tourist arrivals can have a positive impact on…