Thailand's economic growth is expected at 2.8% this year before accelerating to 3.0% in 2025, the World Bank said on Monday, on account of weak exports and a delayed budget.
The growth outlook for 2024 and 2025 was reduced from 3.2% and 3.1% respectively, as forecast in December.
Southeast Asia's second-largest economy expanded 1.9% in 2023 and unexpectedly shrank 0.6% in the final quarter of 2023 from the third.
The Bank of Thailand in February also lowered its 2024 growth outlook to 2.5% to 3.0% from 3.2%.
The cut stems from global trade slowing while the delayed budget slowed government spending, World Bank Senior Economist Kiatipong Ariyapruchya, told reporters in a virtual briefing.
Dimmer export and public investment prospects also attributed to new outlook, the World Bank said in statement.
The shippers’ council expects exports to grow 1% to 2% this year.
Tourism and private consumption will be key growth drivers, the World Bank said, with tourist arrivals projected to reach 90% of pre-pandemic levels this year.
The government is aiming for a record of 40 million foreign visitors this year after welcoming 28 million visitors in 2023.
Prime Minister Srettha Thavisin has characterised the economy as facing a "crisis" and in need of a major fiscal stimulus through his government's delayed signature policy, a 500 billion baht handout to 50 million Thais.
The 'digital wallet' scheme could add 1% to growth but will increase public debt, Mr Kiatipong said.