FTI predicts growth in 17 industries will drive Thai economic rebound in 2023
The Federation of Thai Industries (FTI) expressed confidence that Thailand’s economic recovery will continue this year as the Covid-19 situation improves, prompting higher domestic consumption and a tourism rebound.
The tourism sector is expected to welcome at least 20 million foreign arrivals this year thanks to pent-up demand during Covid-19, China lifting travel restrictions, and government measures to boost tourism, said FTI vice president Kriangkrai Thiannukul on Wednesday.
Exports this year are slowing in line with the slumping global economy. However, benefits of free trade agreements under the Regional Comprehensive Economic Partnership (RCEP) and new FTAs with countries in the Middle East would help keep the Thai export sector afloat this year, he said.
The FTI estimates that 17 Thai industrial sectors will enjoy substantial growth this year, namely mechanical and metallurgical, automotive parts and components, digital, sugar, medical equipment, electricity generation, renewable energy, furniture, pharmaceutical, automotive assembly, petroleum refinery, metal casting, roofing and equipment, steel, food and beverage, printing and packaging, and environmental management.
Factors contributing to industrial growth in 2023 are Board of Investment (BOI) investment privileges, especially in industries related to the new and BCG or Bio-Circular-Green economy; baht balancing to benefit both importers and exporters; government investment in infrastructure; and rising private consumption.
Potential factors that could hamper industrial growth this year include global inflation and a continued rise of energy prices, fluctuations in food prices, rising interest rates that affect business costs, and the possibility of recession and trade war among major economies.
