Positive economic forecast issued for Thailand
GDP set to grow, boosted by tourism and government initiatives
The University of the Thai Chamber of Commerce has projected a robust economic outlook for Thailand, with GDP expected to increase by 4% in the fourth quarter of 2024, thanks to a surge in tourism, government spending, and upcoming economic stimulus measures, including tax relief initiatives aimed at enhancing consumer spending and purchasing power.
Thanawat Polvichai, chairman of the Advisory Centre for Economic and Business Forecasting at the University of the Thai Chamber of Commerce, has announced positive forecasts for purchasing power and consumption in the fourth quarter, anticipating an economic expansion (GDP) of approximately 4%.
This optimism is bolstered by a projected growth of around 3% in the third quarter, along with robust government spending and a notable increase in tourism, with foreign arrivals estimated to reach 36 million by the end of 2024.
The influx of tourists is expected to significantly enhance shopping in tourist provinces, thereby boosting domestic consumption and purchasing power.
Additionally, the government plans to introduce economic stimulus measures at year-end, including tax-relief initiatives and the Easy E-Receipt project aimed at encouraging domestic expenditure.
The University of the Thai Chamber of Commerce estimates GDP growth of 2.6% for the year, driven primarily by the service and tourism sectors. Looking forward, measures such as a 10,000-baht disbursement for the elderly and support for farmers are anticipated to inject an estimated 150 billion baht into the economy, fostering further growth in early 2025.
Amid these positive developments, Thanawat emphasised the necessity for stability in the global landscape, as geopolitical tensions and trade wars could pose risks to the Thai economy.
Meanwhile, Julapun Amornvivat, deputy minister of finance, confirmed that tax-relief measures, including the Easy E-Receipt scheme for eligible taxpayers, will be proposed at the Cabinet meeting on Tuesday, December 24, intending to invigorate consumer spending further in the new year.
