Thailand’s economy grew 3.0% in Q3 2024, driven by tourism and exports, surpassing forecasts. However, challenges like high debt and weak Chinese demand threaten long-term growth.
Thailand’s Economic Growth
Thailand’s economy reported a significant 3.0% year-on-year growth in the third quarter of 2024, the most substantial rise in two years. This growth outperformed the forecasted 2.6%, largely driven by stronger domestic and export performances. Additionally, the seasonally adjusted quarterly growth reached 1.2%, marking a recovery from a previous quarter’s lackluster figures.
Tourism and Future Projections
The Tourism Authority of Thailand anticipates a remarkable influx of 36 million foreign visitors, generating approximately $51.5 billion in revenue. While this indicates a robust recovery post-COVID-19, challenges persist. The National Economic and Social Development Council (NESDC) forecasts GDP growth between 2.3% and 3.3% for 2025, yet government officials stress the need for addressing high household debt and external demand issues.
Addressing Economic Challenges
Despite the positive quarterly results, Thailand’s economy faces considerable hurdles, such as high borrowing costs and sluggish foreign demand, especially from China. Finance Minister Pichai Chunhavajira has stated that new stimulus measures, including a second phase of the “digital wallet” initiative, are under consideration to enhance consumer spending. To sustain growth, Thailand must implement structural reforms to alleviate debt and minimize reliance on external sources.
Source : Thailand’s economy grew by 3.0% in the third quarter exceeding 2.6% forecast
