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World Bank raises Thailand 2023 growth outlook to 3.9% as tourists return
BANGKOK, June 28 (Reuters) – Thailand’s economy is projected to grow 3.9% this year, up from a previous forecast of 3.6%, helped by private consumption growth and a recovery in tourism, the World Bank said on Wednesday.
Southeast Asia’s second-largest economy expanded 2.6% in 2022, when its tourism sector began to rebound after broad pandemic-related travel curbs were eased.
Growth is expected at 3.6% in 2024 and 3.4% in 2025, with tourism and private consumption remaining the primary drivers of growth as external demand weakens, the bank said in a statement.
The return of tourists, particularly from China, has strengthened the tourism outlook. Arrivals are projected to reach a greater-than-expected 28.5 million this year, 84% of the pre-pandemic 2019 level, it said.
However, downside risks remain as weaker-than-expected global growth and political uncertainty pose key challenges to the near-term growth outlook, the bank said.
Thailand is in the process of forming a new government after May’s election, but doubts linger whether the leader of the winning Move Forward party has enough support to be voted prime minister.
Reporting by Orathai Sriring; Editing by Kanupriya Kapoor
Our Standards: The Thomson Reuters Trust Principles.
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