Thai government’s 5% GDP growth aim deemed optimistic amidst challenges

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The administration of Prime Minister Srettha Thavisin aims to boost annual GDP growth to 5%. This goal was unveiled during a policy statement delivered by the premier to the heads of government agencies last week during discussions about the fiscal 2024 budget. However, the World Bank recently cut its growth forecast for Thailand to 3.4% this year and trimmed its outlook for 2024 to 3.5%. This, along with challenges like a delayed budget allocation, a stagnant export sector and a recent dent in tourism caused by the Siam Paragon Mall shooting, has led some industry leaders to view the 5% growth target as optimistic.

Aat Pisanwanich, director of the Center for International Trade Studies, stated that there is a slim chance of the economy expanding by 5% during the current administration, citing that over the past decade, the economy has grown…