Thailand to see lower economic growth: report
The Asian Development Bank (ADB) has lowered its economic growth forecast for Thailand, citing a slowdown in government spending and weaker-than-expected export recovery.
In its most recent report, first published by Nikkei Asia on Wednesday, the ADB revised Thailand's GDP growth projections to 2.3% in 2024 and 2.7% in 2025, down from previous estimates of 2.6% and 3.0%, respectively.
This downward revision makes Thailand the only ASEAN country with a reduced GDP forecast for the period. Meanwhile, Singapore's outlook has been improved, with the ADB raising its growth projection to 2.6% in 2024 and 2025.
The ADB's report also highlighted the potential risks to the region, including rising protectionism, geopolitical tensions, and the ongoing real estate crisis in China. These factors could have negative economic and financial impacts on developing Asian economies.
Despite these challenges, the ADB maintained its overall growth forecast for developing Asia at 5.0% for 2024, supported by continued strong demand for electronics. However, the outlook for Southeast Asia has been slightly downgraded to 4.5% due to downward revisions for countries like Myanmar, Thailand, and Timor-Leste.
The ADB's report serves as a reminder of the economic headwinds facing Thailand and other countries in the region. While the country's economy is expected to continue growing, the pace of expansion is likely to be slower than previously anticipated.
