The acceleration of state investment in 2023 should provide a tailwind to propel economic growth momentum, says Finance Minister Arkhom Termpittayapaisith.
He expects the economy to expand 3-4% in 2023.
Despite the possibility of a global recession this year, public and private investment coupled with the rebound of tourism and domestic consumption should play a key role in maintaining economic momentum, said Mr Arkhom.
A key investment for 2023 is infrastructure to bolster the country's competitiveness, he said.
Mr Arkhom estimates a global recession will not severely impact exports, adding that many export products, especially food, still have strong potential.
Thailand's economic growth is estimated at 3.4% in 2022, according to the World Bank's projection in December 2022, exceeding the bank's 2.9% projection made in June 2022.
GDP is expected to continue to expand in 2023 and 2024 at 3.6% and 3.7%, respectively, with tourism and private consumption, both of which have strongly recovered, remaining the major drivers of growth.
The growth forecast in 2023 was downgraded by 0.7 percentage points from the forecast in June, reflecting the impact of the global economic slowdown on goods trade and investment, according to the World Bank report "Thailand Economic Monitor: Fiscal Policy for a Resilient and Equitable Future".
Mr Arkhom said in the post-pandemic era, monetary policy will play a greater role in ensuring economic stability by taming elevated inflation, while the role of fiscal policy will be toned down.
He believes this year the country is unlikely to post a twin deficit stemming from the current account and budget deficit, as the tourism sector recovers.
The country expects more than 20 million foreign tourist arrivals in 2023. Thailand welcomed a record 40 million foreign tourists before the Covid outbreak.
Mr Arkhom said while the government would continue its expansionary fiscal policy, at the same time it would try to reduce the budget deficit.
The government set the target of the budget deficit at 695 billion baht in 2023.
It posted a deficit of 700 billion baht in 2022, up from around 600 billion baht in 2021.