*
Govt cuts 2023 GDP growth outlook to 3.6% from 3.8%
*
Raises 2023 foreign tourist forecast to 29.5 mln from 27.5
mln
*
Cuts 2023 export forecast to -0.5% from +0.4%
*
Trims 2023 headline inflation outlook to 2.6% from 2.8%
(Adds more forecasts, official’s quotes)
BANGKOK, April 25 (Reuters) – Thailand’s finance
ministry has lowered its 2023 economic growth outlook to 3.6%
from 3.8% projected earlier, on expectations of a fall in
exports as global demand weakens, officials said on Tuesday.
Exports, a key driver of Thai growth, are expected to drop
0.5% this year, compared with a previous forecast for a 0.4%
rise, Pornchai Thiraveja, head of the ministry’s fiscal policy
office, told a briefing.
“A global slowdown is a drag on Thailand’s economic
growth… and exports might not increase as thought,” he said.
Public consumption is expected to fall 2.1% this year due to
an expected delay in Thailand’s 2024 fiscal budget as the
country holds an election on May 14, Pornchai said.
However, growth in Southeast Asia’s second-largest economy,
is expected to be propped up by tourism and domestic
consumption, he said.
The economy expanded 2.6% last year and the recovery has
lagged that of other Southeast Asian nations, with tourism just
starting to rebound last year with 11.15 million foreign
arrivals.
Thailand is expected to receive 29.5 million foreign tourist
arrivals this year, with the return of Chinese visitors, versus
27.5 million projected earlier, Pornchai said.
Pre-pandemic 2019 saw a record of nearly 40 million foreign
tourists, who spent 1.91 trillion baht ($55.62 billion). Tourism
accounted for about 12% of gross domestic product (GDP).
The baht is expected to average 33.17 per dollar
this year versus a previous forecast of 32.5, with the dollar
supported by U.S. rate hikes, fiscal policy advisor Wuttipong
Jittungsakul said.
The ministry predicted average headline inflation at 2.6%
this year, down from 2.8% projected earlier, and against a
24-year high of 6.08% last year.
($1 = 34.34 baht)
(Reporting by Orathai Sriring, Kitiphong Thaichareon and
Satawasin Staporncharnchai; Editing by Kanupriya Kapoor and Sam
Holmes)
