NESDC cuts 2024 growth forecast as Thai economy slows

The National Economic and Social Development Council has cut its 2024 growth forecast for Thailand’s economy following a disappointing 1.9% expansion in 2023.

The NESDC on Monday reduced its 2024 growth forecast to 2.2%-3.2%, from the 2.7%-3.7% predicted in November.

NESDC Secretary-General Danucha Pichayanan told a press briefing that Thailand's GDP grew 1.7% in the fourth quarter of 2023, falling short of the 2.5% expansion predicted by a Reuters poll.

Fourth-quarter expansion was driven by a 3.4% rise in exports and 7.4% increase in private investment but undercut by a 3% drop in government spending.

Growth for the entire year of 2023 was measured at 1.9% – down from 2.5% in 2022.

Monday's briefing came amid criticism of the government's digital wallet scheme for 10,000-baht handouts to almost all Thais aged 16 and over. The ruling Pheu Thai Party says that the handouts are a much-needed stimulus for the sluggish economy.

However, the Bank of Thailand, National Anti-Corruption Commission and other agencies say the economy is not in crisis, so the 500-billion-baht handout scheme is not warranted.