ADB cuts Thailand’s 2023 economic growth forecast to 2.5%
The Asian Development Bank (ADB) has lowered its economic forecast for Thailand in 2023 from 3.5% growth to 2.5%, citing export contraction, reduced government spending, and lower investment from both the public and private sectors.
The ADB also revised down its forecast for the Thai economy next year from 3.7% to 3.3% due to the global economic slowdown.
However, it raised the forecast for developing economies in Asia and the Pacific region as a whole to 4.9%, after robust domestic demand drove higher-than-expected growth in China and India. The outlook for next year is maintained at 4.8%.
The bank reported that developing Asia’s outlook remains upbeat despite global challenges. It predicts inflation in the region will decline from 4.4% last year to 3.5% this year, before rising slightly to 3.6% in 2024.
Downside risks are mainly associated with higher-for-longer interest rates in advanced economies, which could trigger financial instability.
Possible supply disruptions from El Niño and the Russian invasion of Ukraine could renew energy and food security challenges, rekindling inflation, it said.
