Thailand revises economic growth forecast, foreign investments may start picking up again soon

Thai GDP per capita is USD7,159, according to the World Bank, making it an upper-middle-income country

Reuters reported that the Thai economy is projected to expand 3.6 percent in 2022 and four percent in 2023. The growth forecasts are similar to the official data provided by the Bank of Thailand (BOT), wherein the numbers for this year and the next are 3.3 percent and 4.2 percent, respectively.

It is possible for the economy to beat its forecast this year on the back of tourism. 

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FDI in the country experienced a massive drop due to COVID. From USD13.2 billion, it declined to USD4.8 billion between 2018 and 2019. By 2020, it fell even further to (USD4.8 billion), according to Thailand Business News.

However, when others started pulling out, China steadily increased its investments throughout the pandemic.

In 2019, China’s investments were valued at USD8.7 billion under 203 approved projects. Japan’s was valued at USD2.4 billion under 277. Ultimately, China’s investment applications surpassed Japan’s for the first time.

As a result of a rebound in the tourism sector, increased consumption, and exports, the Thai government revised its economic growth forecast for 2022 from 2.7 percent to 3.2 percent. Announcing the highest growth rate in five years, Thai Prime Minister Prayuth Chan-o-cha predicted a 4.2 percent growth in 2023.  

Thai GDP per capita is USD7,159, according to the World Bank, making it an upper-middle-income country.

Investment confidence in Thailand’s economic growth, especially financial stability, is still high, reported The Nation Thailand. According to Arkhom Termpittayapaisith, tourism, exports, domestic expenses, and investments will contribute to the growth of the economy.

“We believe tourism and exports will help support our GDP growth in the second half of the year,” he said. Also, he revealed that the Thai National Shippers’ Council had promised to do its best to boost exports.

The Property Report editors wrote this article. For more information, email: [email protected].